Vertical Construction Leaders Group Update
The Vertical Construction Leaders Group (VCLG) is another one of the three advocacy groups run by Master Builders. The VCLG brings together the best of the vertical construction sector to improve and support the built environment where New Zealanders work, live and play.
The VCLG at our meeting in March raised some concerns for the industry including issues with the new NZS 3910:2023 (clause 9.2), where clauses 9.2.2 and 9.2.3 don’t require notices claiming Variations to be copied to the Independent Certifier. Special conditions for NZS 3910:2023 (clause 9.2) have been developed as part of the Good Contracting project.
The VCLG also expressed uncertainty around Construction Contracts Act Retentions being treated as income and therefore subject to tax. Master Builders is seeking expert tax advice on the issue, and it will be considered as part of the SA2017 review being undertaken by the CWG.
At our meeting in May discussions focused on the government potentially slowing if not cancelling construction projects and the need to assess the construction industry's economic impact. Concerns were raised about inefficiencies following the Kāinga Ora review, and uncertainties that surround funding for broader infrastructure projects like schools and hospitals. We will be looking to quantify the potential damage to the industry and propose alternative solutions that address the government's fiscal concerns while supporting the industry's long-term viability.
