Bulk purchasing upsets construction sector
August 16th, 2012
Unease is evident in the building and construction industry at plans of the Ministry of Business, Innovation and Employment (MoBIE) to enter into bulk purchase of materials for EQC and the Canterbury rebuild, as well as Govt Departments.
The industry is concerned a lack of understanding of how the market works will result in decisions impacting adversely on local manufacturers, build quality and employment. Technical and liability issues and product systems relationships in the building process make the building materials market a much different beast to the office supplies and toiletries sectors in which MoBIE has previously been active for the Govt.
Industry sources say a lack of consultation prior to introduction of a bulk paint tender on behalf of EQC heightened concerns. Christchurch small businesses in such sectors as building, painting and plastering fear a move to labour only contracting using bulk purchased supplies will threaten their financial viability.
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Duncan Cotterill