Risk and opportunity for New Zealand's construction sector
Despite dramatic shifts in the construction industry's operating environment, including the launch of the Construction Sector Accord and the impact of COVID-19, little appears to have changed in terms of the drivers of project delays and construction disputes over the last year, according to latest findings summarised in our 2020 Construction survey report – Building Up New Zealand's Construction Industry.
While construction disputes are tipped to increase, there are also new opportunities for the sector, including planned substantial investment in public infrastructure, with construction industry participants generally believing the industry had risen to the challenges raised by 2020 (although systemic issues remain).
With the high costs of construction projects, which are also expected to continue increasing, coupled with more disputes, we encourage all industry participants to pay close attention to areas such as risk allocation and contractual terms to ensure there is clarity from all parties at the outset of a project.
Russell McVeagh's inaugural Construction mediation survey is also included in our insights report, where for the first time, we surveyed leading commercial mediators and construction industry members about their experiences of mediation.
Please get in touch if you would like to discuss how the report's findings may be relevant and helpful to you and your organisation.
This article is intended only to provide a summary of the subject covered. It does not purport to be comprehensive or to provide legal advice. No person should act in reliance on any statement contained in this publication without first obtaining specific professional advice. If you require any advice or further information on the subject matter of this newsletter, please contact the partner/solicitor in the firm who normally advises you, or alternatively contact one of the partners listed below.