EP 43 · Yarns with Andy

Blair Chant

Hosted by Andy Alagappan
Government Vs PrivateNZS 3910 RevisionProcurementHealth And SafetySalter CartageClimate ChangeEmissionsFormula One

About This Episode

Blair Chant returns (first appeared Ep 11 while at Kainga Ora) now working as contracts manager at Henderson Demolition. This is a substantially more mature and wide-ranging conversation covering: the fundamental values difference between government and private projects (welfare vs profit), NZ's price-driven procurement culture (60% cost/40% non-price weighting), the NZS 3910 revision (a plain language review when they could have introduced NEC), the Salter Cartage case and its implications for business owners under the Health and Safety at Work Act (officers' personal wealth as proceeds of crime), and construction's climate change blind spot (no emissions tracking, landfill diversion creating perverse outcomes like trucking waste Wellington to Auckland). Blair reveals Henderson Demolition is one of the few NZ construction companies tracking carbon emissions.

Key Topics Discussed

  • Government vs private project values. Core difference: private entities driven by profit/ROI, government driven by broader value-for-money including community perception, stakeholder engagement, Iwi, environmental considerations. Alliance models only exist in government because they extract value across those broader values. Government more likely to accommodate worker welfare, reduce hours, improve mental health.
  • NZ price-driven culture. Study showed NZ is one of the most price-driven countries in the world (why The Warehouse succeeds). Procurement: 60% weighting on lowest price, 40% on non-price attributes. Europeans pick the middle option (spreading risk). "The construction industry doesn't deviate from the rest of our culture." Price pressure drives poor mental health downstream.
  • NZS 3910 revision. Four years for essentially a plain language review. Review panel said they didn't have a mandate to address the behavioural/structural concerns, those needed legislation or external regulatory body. Replaced "engineer to contract" with "contract administrator" and "independent certifier", two roles instead of one. Plain language is valuable (lowers entry bar, helps ESL speakers, reduces confusion), but four years could have been spent upskilling industry on NEC. Construction Accord has dissolved, "what happens next?"
  • Alliance models vs ECI. Blair argues alliance models only exist in government. Andy counters that ECI achieves similar collaboration benefits in private sector. Blair agrees both models work when done well but overall NZ procurement needs major reform. One RFI per working day is the stat Andy has run on six different projects.
  • Salter Cartage case. Director Ron Salter pled guilty to failing duties as an officer under H&S at Work Act. Police pursuing proceeds of crime, wealth accumulated while committing ongoing criminal activity (daily failure to ensure adequate H&S systems). If ruled in police's favour, personal wealth (even in family trusts) is fair game. Novel case with no precedent. Implications: business owners need to check their duties, get good H&S consultants, read the Act. "Officer" under H&S Act is broader than company officer, includes anyone with direction/influence over policy.
  • Climate change & emissions blind spot. Construction likely increasing emissions despite NZ's 2030/2050 carbon reduction goals. No construction companies Blair is aware of have carbon neutral goals (contrast: Formula One targets net zero by 2030). Current focus only on landfill diversion, creating perverse outcomes like trucking waste from Wellington to Auckland for one Green Star waste operator. Henderson Demolition tracking carbon emissions internally (exhaust testing + GPS modelling) but no one externally wants the data. ISO 14001 environmental standard drives their tracking. "When regulation changes, implementation costs triple."
  • NZS 3910 special conditions. Contractors need to push back collectively on special conditions. Some terms not in good faith. Underlying principle of 3910 is to act in good faith. "We need to negotiate harder."

Notable Quotes

  • Blair: "The core values are different. For-profit entities, one of their driving principles is to make a profit. Government projects... it's not the primary concern."
  • Blair: "New Zealand is one of the most price-driven countries in the world... the construction industry doesn't deviate from our culture."
  • Blair: "The review panel conducted a plain language review. That's kind of my feeling."
  • Blair: "If this is ruled in the police's favour, wealth accumulated by directors is fair game. Doesn't matter if it's in your family trust."
  • Blair: "How many construction companies in New Zealand have a net carbon neutral goal? I'm not aware of any."

Guest Background

Blair Chant, now contracts manager at Henderson Demolition (returned after time at Kainga Ora). Previously: Beca (geotech lab tech), JFC (civil main contractor), Henderson Demolition (9 years first stint), Kainga Ora (project manager). Career built through relationships. Would go back to Fletcher's. Henderson Demolition has ISO 14001 (environmental standard) and tracks carbon emissions internally. Big Lewis Hamilton fan, relates to Hamilton's non-privileged background and grit. Follows Formula One closely.

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