impose unrealistic timeframes for the tender process (and the project). To win tenders, contractors may, as a result, try to deal with this by submitting bids that over-promise on price and time and include significant tags to ensure that they are not taking on risk they have not priced for. On the other hand, developers don't trust contractors to finish jobs to the required standard, on time and on budget (quality, price and time certainty). As a result, developers try to deal with this by changing standard contract terms. The consequence of this culture of mistrust is serious. It is leading to an unsustainable industry that has low productivity and which does not deliver on project outcomes. Consequently, value is not being delivered to the New Zealand public. The Report sets out other related issues at play. Some of these issues appear symptomatic of the lack of trust between the contracting parties: • There is an aggressive approach to transferring risk to the contractor that is discounted or not priced for when assessing tenders which arises from a lowest price culture • Unrealistic time bars are being used to prevent the granting of variations or extension of time claims which arises from the need for cost and time certainty for the public sector • Many modifications are being made to standard construction contracts; which presumably are being made to reflect the preceding two issues. The Report further identifies that: • There are no caps on contractors’ liability including in the NZS standard form contract • The independence of the Engineer to the Contract is being compromised by acting as the client's consultant; which may result in the Engineer's decisions being (or at the very least, appearing) skewed in favour of the client • There is a perception that there is a lack of knowledge and experience in delivering infrastructure projects in the public sector.