RMBA chief executive Ankit Sharma senses a growing alignment between Government intentions, market sentiment, and industry capability.
As we reach the mid-point of 2025, there’s a real sense that the ground beneath our sector is shifting.
The challenges of recent years haven’t vanished, but there’s a growing alignment between Government intentions, market sentiment, and industry capability.
What we do next, how we move from momentum to delivery, will shape not just our sector’s recovery, but New Zealand’s future.
Budget 2025: A step forward, but execution is everything
Budget 2025 confirms what many of us already know: construction remains central to New Zealand’s economic resilience.
While the fiscal environment is tight, the $6.8 billion capital programme including new school builds, hospital infrastructure, and a new housing fund sends a strong signal.
But, as ever, the test will be what’s delivered on the ground.
For our members, that means more than just a headline figure. It means visibility of the project pipeline. It means procurement processes that are smart, efficient and fair.
And it means recognition that without better delivery models, we risk repeating the same mistakes that have hampered past programmes — delays, cost overruns, and avoidable disputes.
We were pleased to see the Government respond with a practical, business-minded approach, especially through the new Investment Boost policy.
From July 1, builders will be able to deduct 20% of the cost of new assets such as utes, tools, or new premises from taxable income, on top of standard depreciation.
This is a real win. It gives builders across the country the confidence to invest in their business, at a time when every dollar counts.
It also means more organisations around the country may look at adding new premises or renovating their current premises — which means work for the sector.
Procurement: A system in need of repair
One of the most consistent themes we hear from our commercial members is that procurement is holding our sector back.
Despite the investment signals, the rules and processes that sit behind public project delivery are often fragmented, overly complex, and risk-averse.
That’s why Master Builders has made a comprehensive submission to the Government’s procurement review calling for smarter, fairer and more consistent approaches. Among our key recommendations are:
• Lift the Government Electronic Tenders Service (GETS) threshold from $100,000 to $500,000, and raise the international tender threshold to $20 million — giving more room for local firms to compete.
• Share risk more fairly, especially around factors such as poor design, consenting delays, or cost escalations that are outside a builder’s control.
• Simplify and standardise processes, contracts and documentation, particularly for smaller and regional businesses.
• Procure for value, not just price. The lowest-cost approach too often ignores whole-of-life performance, safety, and long-term client value.
The message is simple: procurement matters. Get it right, and we unlock better outcomes for everyone, from clients and contractors to communities and taxpayers.
We know this is a critical area for our commercial members, which is why we have done extensive work around the Good Contracting Principles and Guidelines.
SA-2025: Fairer subcontracting, designed by industry
We’re also proud to be launching the new SA-2025 subcontract this month. Developed in partnership with the Specialist Trade Contractors Federation, this contract represents a major leap forward in fairness and functionality.
It aligns with the updated NZS 3910:2023, and tackles many of the issues subcontractors have flagged for years around clarity, retention, insurance, and the management of time, variations and notice.
It’s a tangible example of industry leadership where we’re not just pointing out problems but delivering solutions that work for real-world projects.
Building on regional success: Join us at Constructive 2025
Over the past few months, we held our first-ever series of Regional Constructive Summits across the country. I want to thank everyone who joined us. Your presence, insights and openness helped make these events a real success.
While each summit tackled the unique challenges and opportunities of its region, what stood out most in the feedback I heard was something more personal — the value of connection and reflection.
Connection matters. Talking to other business owners, people who face similar pressures, risks and responsibilities, can be powerful. Even though we often compete, in forums like these we find common ground. We realise we are not alone in the challenges we face. We share ideas. We spark new thinking. And sometimes, we just feel a little more normal knowing others are going through the same highs and lows.
Reflection matters too. A strong building business is not just about working in the business — it’s about working on the business. The summits gave people space to take a step back, reflect, and refocus on what really matters. That is what makes good builders into great business leaders.
We are now building on that energy and insight as we prepare for Constructive 2025, our national industry summit, taking place on September 11-12 at the Aotea Events Centre in Auckland.
This year’s conference will be more dynamic and action-focused than ever, featuring former Prime Minister Sir John Key on bipartisan infrastructure strategies, international keynote speaker Nigel Collin on embedding innovation through small steps, and Sport NZ chief executive Raelene Castle on leading under pressure.
We will also bring back the Innovation Showcase and expand our breakout sessions to make sure there is something for every business, no matter your size or region.
Registrations are now open, and I encourage you to secure your place early. For details and to register, visit the Constructive 2025 web site. We look forward to seeing you there and continuing the conversations that help us all build better, together.
