ER88 Improving residential construction firm resilience (2024)

By necessity, most of Aotearoa New Zealand’s residential construction firms are small scale. This is often seen as a weakness in terms of resilience and is perceived as one of the key reasons for the sector’s vulnerability. However, there is limited understanding about which characteristics matter most for system resilience. Scale is a factor, but the business model approach may be equally or more important.

This project aims to understand the key factors of resilience, identify any weaknesses and analyse the role that business scale and business models can play in addressing these challenges. The project will work closely with industry bodies and large group-home builders.

A key focus will be on whether new changes to practice adopted by large firms (such as quality management and assurance systems) can be successfully extended to medium-sized firms. The project will establish whether such a move could improve sector resilience and influence a higher proportion of houses being constructed across the country.

With literature reviews, targeted interviews and analysis of available data, this project seeks to co-create mapping analysis with key industry players. Developing case studies and a self- assessment tool will turn these findings into free, practical and easy-to-digest guidance for the industry.

By understanding the factors that underpin resilience, this project seeks to support businesses in their business model approach and help to improve long-term resiliency of the construction system.