With the 2025 local body elections out of the way, newly elected councils will get to the business of serving their communities, writes Alan Pollard, CEO, CCNZ.
As we know, many councillors are elected based on popularity or personality and can have limited understanding of the complexity and scale of local government entities.
They also may have limited understanding of the critical role spending on infrastructure plays in supporting those communities. So, it’s important to build understanding and relationships. Sometimes contractors can be hesitant to raise important points, lest it seem like they are criticising clients, yet they should not underestimate the value of the practical perspective they can bring to the table.
Throughout the campaign, candidates have referred to the need for austerity measures, to cut costs and obtain value for ratepayers dollars. This narrow view poses a risk to the prospect of improving economic conditions over the next 12 months, and risks communities continuing to have to tolerate aging and inadequate infrastructure in favour of not incurring cost now. We also know that lowest cost does not necessarily equal best value.
To connect contractors and clients, the Association has been co-hosting “forward works” briefings across many centres. We are increasingly looking to collaborate around local authority earthworks expectations through ‘field day’ type events.
Having a good relationship with clients and regulators and good dialogue around how projects can best come to life means we can reach better outcomes and deliver the vital infrastructure our communities need more efficiently. For instance, contractors often understand commercial consequences better than clients in central and local government, so we have a responsibility to articulate issues and solutions to our clients.
We are here to support directly, through reports and publications. And indirectly, through fostering discussion between the market and clients.
We know from experience that some of the best client–contractor relationships are where the region hosts regular contractor forums, and when there is an open, honest, transparent relationship between all parties. In those regions, this approach has significantly shifted the dial toward a true partnership and delivered tangible positive outcomes.
Early contractor engagement, which has become more popular in the UK and Europe in recent times, helps to address the increasing complexity of infrastructure projects, pressure on budgets and the need to deliver projects faster and more efficiently. This can lead to improved risk management; better collaboration between clients, designers, and contractors; more cost certainty; and potentially faster project delivery.
We will be shaping up some case studies around early contractor engagement in the near future, to demonstrate to clients how they can get the most for their infrastructure spend and get the most value from early engagement with the market.
While we support ECI and it can add a lot of value, it’s true that it can also be done poorly. So, we need to look back at successful examples but also learn from cases where things haven’t gone so well. Keep an eye out for these resources in the near future.
Next in client engagement
As for taking the next steps around engaging with clients, CCNZ has developed resources for branches to use in welcoming new councils, in conjunction with our government relations partner Awhi Group.
These resources are designed to get the message through, and to support engagement between council staff, councillors and the regional industry, and will also be important for regional engagement with MPs in the lead-up to the general election next year.
Current polling suggests the next general election will be a close race. In addition to staying in front of our key Government ministers – Chris Bishop for infrastructure and resource management, Simon Watts for local government including water, Louise Upston for social development, Erica Stanford for immigration and education, and Penny Simmonds for vocational education – we remain engaged with the Prime Minister, and key coalition party leaders and MPs.
We have also been engaging with opposition parties regularly. Contractors need to work with, and have good relationships with, whoever is in government.
Our strategy is to document and advocate for things of most importance to our industry, including pipeline conversion to real projects, commercial sustainability, workforce development (including domestic and skilled migrants), and regulations that are fit for purpose. This approach also informs good policy. Well-informed future policies should take the needs of contractors into account, consider commercial and practical needs, and be supportive rather than restrictive.
We have worked hard over the past 12 months to have CCNZ recognised as a trusted, credible, and reliable partner.
And all of us – branches, national office and members – have an important role to play in shaping the continued perception of our industry following council elections, and in the leadup to next year’s election. In turn, this will steer good outcomes for the industry, for our local communities, and for the country as a whole.
Parting words from Jeremy Sole- a final column