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Accord supports procurement during COVID-19

The Construction Sector Accord signals a new way for government and industry to work together to meet some of the key challenges the sector faces, such as skills and labour shortages, poor risk management, unclear regulations and pipeline, a lack of coordinated leadership, and a culture of shifting risk.

In collaboration with industry and agency partners, the Accord released the Construction Sector COVID-19 response plan in April. The plan aims to maintain confidence in the sector, support jobs and businesses, and minimise the economic damage from the COVID-19 disruption.

Construction Sector COVID-19 response plan - Construction Sector Accord

As part of the plan, the Accord has been working with government to issue procurement guidance to agencies.

Contract variation guidelines to respond to COVID-19 lockdown

These guidelines set out a consistent government position for contracts during the COVID-19 Alert Level 4 lockdown. Agencies should take a fair and consistent approach to managing projects that were stalled due to the shutdown.

Guidance for public sector agencies dealing with the contractual implications for construction projects of the COVID-19 lockdown period [PDF, 526KB] - Construction Sector Accord

This additional guidance covers the complex process of establishing the fair value of these variations. The guidance includes a set of principles for parties to follow when negotiating the cost of the variation, and outlines the factors to take into account.

Guidance for public sector agencies dealing with variation claims due to the COVID-19 lockdown period [PDF, 757KB] - Construction Sector Accord

The guidance was developed based on Construction Sector Accord principles, and it supports the COVID-19 response plan aim of keeping cash flowing in the sector.

How to work with suppliers

This guidance helps government agencies clearly communicate with construction suppliers during the COVID-19 shutdown situation, in a way that demonstrates good practice under the principles of the Construction Sector Accord.

An example of good practice by Auckland Transport (AT) was adapted by the Accord to be used widely across all government agencies and their construction suppliers. It includes information and expectations on essential services, procurement, contracts and business continuity plans during the COVID-19 disruption.

Working with your construction suppliers during COVID-19 [PDF, 303KB] - Construction Sector Accord

Rapid delivery models

This guidance provides a range of potential delivery models in both the horizontal and vertical construction sectors for local and central government agencies. It includes analysis on what works well and what doesn’t in specific situations, and encompasses ways to streamline processes including procurement, consenting, governance, and funding approvals.

Rapid mobilisation models for the construction sector [PDF, 5MB] - Construction Sector Accord

Upcoming procurement focus areas for the Accord

The work on rapid delivery models will be expanded into a ‘playbook’. This will step agencies through a typical construction project, outlining best practice and providing advice for streamlining or fast-tracking parts of the process.

The Accord will soon publish information on its first ‘Beacon project’. Beacon projects showcase exemplars from across the sector, promote information sharing and help others learn about the challenges and successes of an organisation that tried a new approach.