As the Managing Director of McLeod Cranes Ltd, I recently raised a significant issue with the Minister for Workplace Relations and Safety.
The topic at hand is one that impacts many small to medium businesses across New Zealand: the overwhelming proliferation of pre-qualification systems.
While the concept of pre-qualification is sound, the sheer number of systems that subcontractors must navigate has become a serious problem.
The Problem with Proliferation
Prequalification is intended to ensure that subcontractors meet certain standards, particularly in areas like Health and Safety.
This is crucial, as it helps maintain a high level of safety on job sites and ensures that all subcontractors are operating with the same level of diligence. However, the reality for businesses like mine is that we're required to complete multiple prequalification processes each year—76, in our case—with a full-time employee dedicated solely to this task.
The issue isn't with the concept of pre-qualification itself, but with its proliferation.
When businesses are forced to complete dozens of these assessments annually, it drains resources—both in terms of time and money—that could otherwise be spent directly on improving Health and Safety practices.
Instead of fostering innovation and better practices, these multiple pre-qualifications often demand standardised, boilerplate responses that do little to reflect the real-world conditions and risks that our teams face.
The Impact of AI on Pre-qualification Systems
The situation is poised to become even more complicated with the increasing use of artificial intelligence which will start to seep into these pre-qualification processes. Many of these systems are already fully online, with minimal human interaction.
As AI becomes more prevalent, there's a risk that the process will become even more automated and detached from the realities of our work.
For example, we've already faced pushback on a prequalification submission due to changes in the number of pages in our response.
This raises concerns about how AI might evaluate our submissions in the future—without any understanding of the context or specific challenges we face, particularly in high-risk areas like crane operations.
Moreover, these AI-driven systems may focus on elements that are irrelevant to our specific work, asking questions that have little bearing on the actual risks we manage daily. This not only wastes our time but also fails to contribute meaningfully to the safety of our operations.
The Need for Government Intervention
In my letter to the Minister, I emphasised the need for government intervention to address this issue.
Historically, we relied on a single prequalification system managed by ACC. You may remember ACC Tertiary, which was widely accepted and streamlined the process for all parties involved.
An actual person turned up and competed these audits!
Today, however, the landscape has become fragmented, with subcontractors required to maintain multiple pre-qualification systems, each with its own set of requirements and processes and all online.
This redundancy is not just inefficient; it actively detracts from the goals of Health and Safety. Instead of focusing on meaningful improvements and innovation, we're bogged down in a cycle of repetitive paperwork and automated audits that add little value to our operations.
It's clear that the current approach to pre-qualification is unsustainable. A return to a more unified system would not only reduce the burden on subcontractors but also enhance the effectiveness of Health and Safety practices across the industry.
I strongly urge the government to take this issue seriously and consider the broader implications for businesses like ours.
As we look to the future, it's essential that we strike a balance between maintaining high standards and allowing businesses the flexibility to innovate and improve their practices.
By addressing the proliferation of pre-qualification systems, we can ensure that resources are spent where they matter most—on creating safer, more efficient workplaces for everyone.
Moving Forward
I look forward to engaging further with the government on this issue and will be submitting a formal response through the Ministry of Business, Innovation, and Employment (MBIE) website. I also discussed these concerns in person during the Minister's visit to Tauranga.
We covered off the over the top road cone issue. Which I’ll post about and how it directly affects the cost often more expensive than the job itself.
But for now, the focus must remain on how we can better support small to medium businesses in their efforts to maintain high standards in Health and Safety, without overwhelming them with unnecessary and redundant processes.
By doing so, we can ensure that our industry continues to thrive, with safety and innovation at the forefront.
My goodness we need a focus on productivity not repetitive paperwork.
Scott McLeod
Managing Director
Mcleod
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