Commissioned by the leading industry think tank Infrastructure New Zealand, the entwine report built upon this NZIA research but with a specific focus on major infrastructure projects. In addition to addressing construction industry concerns raised by leaders of both the private and public sectors, the intent of the entwine report was also to add value to New Zealand society as a whole.
The entwine report was passionately authored by Leah alone and went far and above the originally envisaged output. Key challenges were not only identified, but they were also articulated within a system context, namely the negative procurement journey. This framework created a clear vision of cause and effect and thus allowed potential root causes to be proposed. Understanding these enabled the design of the positive procurement framework - providing a clear vision of what good procurement looks like.
the negative procurement journey
The below illustrates the decision-making process of public sector agencies and highlights common weaknesses with both policy context and procurement approaches. The framework exposes how the flow-on effects of these weaknesses have led to compounding negative impacts on not only industry but individuals and society as a whole.
The core drivers of positive procurement outcomes are presented in the centre of the positive procurement framework. The concentric circles radiating outward demonstrate all dependencies on these drivers, and finally the ultimate positive outcomes that could be achieved. This concept of value creation led from the top is also highlighted by the blue arrows, while the red arrows highlight key feedback loops.
What is clear is that value will only be optimised for New Zealand when the key drivers are functioning at an optimum, and when any limitations on capability that result from an agency's core function, are objectively addressed.
While many attempts to reform the construction industry - in multiple jurisdictions - have focused on structural or transactional change, the entwine report recognises in full the fundamental need to build a positive behavioural culture in parallel with both long term political intent and agency-level capability/capacity.
The positive procurement framework is simple in its design but impactful in its message.
the report in text, film & audio
The report was both released and presented at Infrastructure New Zealand's 'Building Nations' symposium, August 2018.
Public sector and industry leaders were interviewed regarding current issues, good practice, and potential solutions. This report identifies issues from both a public sector and industry perspective and opportunities for improvement.
The findings indicate a culture of mistrust between the public sector and industry and are broader than the use of contracts themselves. The review identified seven key challenges centred on this theme.
Responses from the annual AECOM Sentiment – Infrastructure and Buildings Construction Survey closely align with the findings of the review, with an increase in concern about poor procurement.
This review is intended to assist the ITU in its role to lift the performance of New Zealand's public and private sectors in procuring and delivering major infrastructure projects.
New Zealand Ministry of Innovation & Employment (MBIE)
Good procurement practices are essential to high performance in the sector. The plan focuses on building procurement skills, promoting clearer contracts, and a better deal for subcontractors.
Getting procurement right at the front end of a project helps set things up for success and ensures quality outcomes and value for money in the long term.
Central government makes up around a fifth of the construction spend in New Zealand, and it has the potential to take a lead in setting procurement standards in the industry — improvements will impact on behaviour across the sector. There is evidence of poor procurement practice and inadequate levels of skill in both government agencies and in the wider sector. The 2018 Entwine report into public sector procurement of major infrastructure projects identified several weaknesses including: