Ministry considers cutting number of firms constructing school property

File image.

The Ministry of Education is considering using fewer construction suppliers to build major school property projects.

Around 190 suppliers are currently used to deliver the projects, but the ministry is now consulting to cut that number to "a smaller group".

Its Chief Executive of School Property Jerome Sheppard said the move was about reducing work and making the process quicker.

"For example, two schools in the same region building similar classrooms can end up using different processes, timelines and suppliers. That creates extra work, makes planning harder and can slow delivery."

He said "no decisions had been made and no new procurement had begun" and no suppliers have been selected or prioritised.

Sheppard said: "Most school property projects are managed by schools. This proposal does not affect those projects. Schools will still be able to hire local builders and suppliers for maintenance, refurbishments, upgrades and other school-led work.

"For example, a school replacing a roof, upgrading toilets, repainting classrooms or carrying out a small refurbishment would continue to use its usual procurement process.

"This proposal looks only at how the ministry delivers centrally-managed major projects."

He said big projects could be scheduled together with other schools in the area rather than being managed individually.

Construction industry

Thousands of construction jobs have been lost since a peak in the sector in 2024.

1News asked the Ministry if construction jobs could be lost across various firms if larger companies were favoured to smaller ones. A spokesperson said suppliers have provided feedback as well as other stakeholders.

Asked if contracts would go to larger companies, the ministry said no decisions had been made.

Currently sitting on the school property establishment board are Mark Binns, former chief executive of the infrastructure division of Fletcher Building, and Rick Herd, who was chief executive of Naylor Love for 11 years until March 2024.

Sheppard said there were no conflicts of interest: "The School Property Establishment Board provides advice only. It does not make procurement or contract award decisions.

"Conflicts of interest are managed under standard public sector rules. People must declare any actual, potential or perceived conflicts, and those conflicts are actively managed. If someone has a connection to a company, they do not take part in decisions relating to that company."

Since coming into government, Education Minister Erica Stanford has funded 1373 new classrooms across the country, including recently a $160 million package for 133 more classrooms in the North Island.

SHARE ME

More Stories