Changemaker: fresh approach could transform NZ construction outcomes

Could a simple change to the way infrastructure and vertical construction are delivered in New Zealand prevent many of the cost overruns and budget blow outs plaguing the industry?

That’s the question posed by an industry white paper released today and soon to be presented to government and other key procurement decision-makers across Aotearoa.

Titled The Integrated Project Delivery Advantage, the paper explores the rise of digitally-enabled Integrated Project Delivery (IPD 2.0) – a methodology that fosters collaboration and risk-sharing by joining project parties together under a multi-party or collaborative contract. 

“Asset owners and construction companies can’t easily control supply chain issues or rising costs of materials and labour, but they do have agency over the delivery method used to get a job done,” said Jason Howden, White Paper Lead and Chief Innovation Officer at Revizto.

Howden said the modern incarnation of IPD and lean methodologies like it had been making waves internationally, with recent high-profile successes including 65,000-seat Raiders Stadium in Las Vegas, and the impressive San Leandro Medical Centre in California.

“Both of those projects were extremely complex but still completed on schedule and budget. 

“Closer to home, in Canterbury, we’ve seen IPD used to impressive effect for delivery of Lincoln University’s Waimarie science hub, voted the world’s best education building at the 2024 World Architecture Festival Awards.”

The Integrated Project Delivery Advantage white paper was informed by a roundtable event that brought together more than 60 construction industry leaders at Te Papa in Wellington in July. 

It includes 10 key recommendations, ranging from educating staff on how to run a project using IPD methodology, through to a call to update the NZS 3910 standard contract used for most government procurement to enable IPD on infrastructure works.

“All too often traditional models like ‘design-bid-build’ lead to wringing of hands and finger pointing when issues arise during a project’s execution,” Howden said. 

“The shared contract at the heart of IPD promotes collaboration by formalising collective ownership of risks and sharing of rewards for project success, resulting in better outcomes for everyone.”

Howden said exploring alternative delivery methods was critically important in New Zealand, given the current challenges faced by industry, government, councils and ratepayers.

The costs of vertical construction are continuing to rise and in the infrastructure space, New Zealand ranks in the top 10% of the OECD for spending as a proportion of GDP, but in the bottom 10% for the ‘bang for buck’ it achieves, he said.

At the same time, the economic climate and growing cost pressures faced by contractors have forced many to downsize. According to BDO’s 2025 Construction Sector Report, less than a third of construction companies planned to actively look for new staff in the year to May 2026. 

“Our roundtable discussion highlighted the industry’s enthusiasm for trying something new and the white paper provides a blueprint for how it can be introduced and harnessed in New Zealand to create a fairer and more efficient construction industry,” Howden said.

The full white paper is available for download from the Revizto website.