Government Contract Guidance to support industry

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An early demonstration that government is committed to the Industry Response Plan announced on Monday (see previous story) was Wednesday’s publication by MBIE’s Chief Executive of guidelines to government agencies engaged in construction projects, whether they be vertical or horizontal in nature. Titled COVID-19 Government Contract Guidance to Support Industry, the guidelines focus on creating a consistent and supportive approach to contracts.
 
The guidelines makes it clear to government agencies that, because the government's response to COVID-19 has resulted in an effective change in law, extra costs incurred by contractors during the lockdown can be treated as a variation to the contract. This guidance by government is welcomed by industry. Though it relates to government contracts only, it is hoped that the government’s leadership on this issue will flow through to private sector projects.
 
Building and Construction Minister, Hon Jenny Salesa said of the guidelines: "By taking a fair and consistent approach across government in how we deal with thousands of contracts and hundreds of firms, we can provide the best possible chance to this industry of weathering the damaging economic impacts of the current lockdown period."
 
Read the Guidance document