Innovate, Partner, Build Programme

Published: 15 April 2019

Housing more Kiwis means Housing New Zealand (HNZ) has to work differently with industry partners to build more homes, faster and more efficiently.

That’s why we’re contracting build partners for the long-term who can help us achieve production efficiencies, as well as innovate materials and offsite build techniques. It’s a new way of thinking and building.

 

Housing New Zealand’s intended build programme

We are embarking on New Zealand’s largest state-backed housing programme in decades. Over the next 10 years we will transition from a small scale of delivery to providing close to 2,000 sustainable new state homes each year, as well as a large number of refurbishments.

We are looking to make changes and improve, for example: the key areas of time taken to build, cost, quality and health and safety. We are also open to innovations in other areas. To do this we must operate more efficiently to deliver at this scale. Our intended construction programme over the next 10 years will see the delivery of around 19,000 homes over the period. The Housing and Urban Development Authority may influence our build intentions which will be reviewed and communicated once any potential legislation has been confirmed.

We invite build partners, materials and service suppliers to come on this journey with us. Find out more about supplying goods and services to Housing New Zealand.

Housing New Zealand’s new way of working

HNZ is moving to a new way of working with the construction industry. We want to make our size and continuity of building activity work for us and our partners when procuring the large amounts of materials and labour needed to deliver the state homes New Zealanders need.

We are inviting industry partners, current and prospective, to come to us with ideas on how to deliver new homes at scale and pace through the use of innovative building methods and materials.

HNZ is:

  1. Signing capacity partnering agreements with our build partners for the delivery of a set volume of state homes each year and over a longer time period, e.g. for up to three years , rather than on a project by project basis.
  2. Using our scale and our forward planning to purchase construction materials and components across our entire build programme and, where possible, direct from the manufacturer.

These two changes will enable our build and materials partners to confidently invest in plant and people,  enabling Housing New Zealand to deliver more homes more efficiently and will ultimately mean we can house greater numbers of New Zealanders – benefitting both tenants and taxpayers.

We’ll have more information on our new contracting methods soon.

Initiatives already underway to build smarter

To build more homes more efficiently and bring down costs of new homes, Housing New Zealand is already:

  • Building to standard house designs to increase productivity across the development cycle
  • Entering into capacity partnering agreements with build partners
  • Using offsite manufacturing including introducing new technologies such as cross-laminated timber in medium density housing
  • Our subsidiary HLC is ensuring HNZ land is ready to build on through large-scale master planning and civil works.

Further efficiency gains depend on how quickly and effectively we can partner with industry to meet our delivery targets.

Our existing supplier panels will be reconfigured to ensure we can access large-scale supply of labour and materials to deliver our build programme over time. We will transition our valued suppliers through to our new way of working, and have been communicating with them throughout.

We are also talking to councils across the country about measures to streamline regulatory approvals and also to ensure our activity is aligned with current and future infrastructure expenditure.

We can only achieve what we need to do for New Zealand, delivering a sustainable number of new state homes every year, if our partners grow and are successful.

We will form lasting, mutually beneficial relationships with industry partners to deliver state housing at scale and at pace.

The amount of building work available with Housing New Zealand overall will increase. There will be particular opportunities for suppliers of both materials and labour, and also partners who can offer innovations that lead to more efficient building.

We need increasing amounts of components and materials for the construction of new homes and the refurbishment of older ones. We may negotiate directly the buying of these with manufacturers so we are more efficient.

We are committed to transitioning our current partners through to our new way of working and all existing commitments will be honoured. You can address any specific questions to the Housing New Zealand team at partner@hnzc.co.nz

The message for our current partner is: Keep building for us. The multi-year commitments Housing New Zealand will offer is something you can build your business on. You’ve got the certainty of much greater volumes coming up, so you can plan and invest in the future of your business.

For New Zealand

  • More quality, modern, fit-for-purpose state homes every year for the next decade
  • This includes freeing up land for market and affordable homes
  • An industry that is incentivised to build more efficiently, work smarter and adopt innovations
  • More trained people for the construction industry through commitments to training and apprenticeships
  • Efficient use of taxpayers’ money and sound management of one of the Crown’s largest assets.

For suppliers

Our new way of working is offering greater commercial opportunities for qualified partners, particularly for those who can scale up.

Our supply and build partners will have the certainty and stability of knowing they have a set and secure amount of work with us year after year.

Through ongoing engagement, Housing New Zealand aims to encourage greater capacity, capability, and innovation across the construction and materials industries.

There will be opportunities for new industry participants and those in the regions too.

We are offering our partners the opportunity to build a strong, trusting, and mutually beneficial relationship with the country’s biggest builder of homes. Housing New Zealand is a cornerstone government client with large order book for labour and materials.

For Housing New Zealand

The changes made will enable us to deliver more state homes, sooner, and more efficiently.

Collectively these initiatives will mean:

  • Improved housing delivery time and other efficiencies
  • Ability to meet our rising targets
  • Greater innovation in construction methods and materials
  • Stronger relationships with industry partners that endure over time
  • Greater collaboration with the private sector on building innovation and filling skills gaps

Housing New Zealand can remove time, cost and uncertainty from our redevelopment work by contracting with our valued supply and construction partners for a particular price and capacity over time, rather than on a project-to-project basis. We will have the relevant agreements in place with industry partners to ensure we meet our delivery targets on a year by year basis.

Further enquiries

If you have any enquiries, email us at partner@hnzc.co.nz

For media enquiries, email media@hnzc.co.nz

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