Construction embraces eInvoicing – and the benefits are clear

Businesses registered to receive eInvoices in the construction sector have surged by a massive 854% since 2023 to 9157 eInvoices in 2026. This means construction now makes up 17% of all businesses registered for eInvoicing.

For an industry that plays such a significant role in New Zealand’s economy, this momentum matters. Construction has a 7.8% share of GDP, the fourth highest out of 16 industries (see footnote 1 below) and comprises 13.2% of all enterprises in New Zealand. It employs one in 10 New Zealanders as their primary job (see footnote 2 below).

The industry is important to a lot of New Zealand livelihoods. It also heavily relies on cashflow, and this is where eInvoicing is making a real difference.

The cashflow problem

Slow payment cycles have long plagued the industry hitting small cash-strapped subcontractors. They can end up waiting weeks if not months for payment. This is because invoices often remain in the contractor’s inbox and are not forwarded promptly to the end buyer.

Payment stalls, materials are delayed or don’t arrive, and possibly work even stops with potential lost time, revenue cost and reputational risk.

eInvoicing addresses this at source. There are no posted invoices or PDFs emailed. eInvoices are directly transferred between buyer’s and supplier’s systems – even if they are different, arriving instantly. There is no manual handling, no lost PDF attachments, no chasing and ultimately, faster payments.

Government leading the way

Government agencies are significant customers for the industry. Government policy is driving faster uptake of eInvoicing to improve efficiency and support small businesses. Under the Procurement Rules, most agencies must send and receive eInvoices and pay them within five days, with suppliers required to pass these payment terms down their supply chains.

Alan Carnaby, Director Smart Data Economy at MBIE says the rules are designed to create a domino effect throughout the industry.

"These rules will further improve payment times to small subcontracting businesses and accelerate eInvoicing adoption with our large businesses. they will help ensure the government continues to lead by example in supporting better cashflow and fairer payment practices for suppliers and now their subcontractors."

Big brands on board

With the Government having set the direction, it is the private sector that will ultimately drive how fast eInvoicing is embedded in New Zealand businesses.

The pace has been set with two of New Zealand’s largest suppliers to the industry now on board - Placemakers and Bunnings.

For Placemakers, making the switch was the “logical next step” in its journey to provide customers with smoother integration into their finance systems.

Nod Kininmont, Placemakers Digital Delivery Lead says although eInvoicing wasn’t specifically being requested, customers were clearly looking for smarter integration options to streamline their accounts and improve efficiency.

”eInvoicing was the logical next step. With support from our eInvoicing partner, implementation was straightforward and allowed us to deliver a truly software-agnostic solution to a broader customer base.

“The result is a scalable, future-ready invoicing experience that better reflects the diverse ways our customers operate.”

Likewise for Bunnings, the transition has benefited customers and delivered real operational gains says David English MICM, Head of Credit, Bunnings Group Limited.

“eInvoicing has made it easier for our business customers to work with us. Thanks to the way eInvoices are transmitted directly between software systems we have seen fantastic improvements including fewer issues with invoices going missing and emails not working.”

“We have seen a sevenfold decrease in transmission failures since making the switch to eInvoicing. These time savings have translated directly into cost savings and efficiencies that have made the investment into getting set up more than worth it.” (see footnote 3 below)

eInvoicing capability(external link) — New Zealand Government Procurement

Prompt payment times(external link) — New Zealand Government Procurement

Get started now

Join the thousands of others in the construction sector already signed up to eInvoicing.

Xero Business Edition and MYOB Business users can easily send and receive eInvoices now, and it’s free. Check out their websites on how to get started.

Register to receive eInvoices(external link) — Xero Central

Send an eInvoice(external link) — Xero Central

eInvoicing(external link) — MYOB

Don’t use Xero or MYOB? A wide range of other software providers support eInvoicing.

eInvoicing advice for large businesses

Want to talk more?

Get in touch with us for an appointment to help you take the next step and realise the significant savings through reduced processing costs and administrative delays and payment issues. Email us at: eInvoicing@mbie.govt.nz

Footnotes

1. Building New Zealand: Focus on the construction industry(external link) — Statistics NZ
2. New Zealand business demography statistics: At February 2025(external link) — Statistics NZ
3. Our journey with eInvoicing(external link) — Australian Institute of Credit Management