The Government is promising a "reset" for the troubled vertical construction industry, including a pledge to stop low-balling companies for projects.

Three ministers met with various leaders from the industry in crisis talks on Monday after the Ebert construction company went into receivership last week.

This followed Hawkins collapsing and Fletchers pulling out of the vertical construction sector completely - basically the building of taller buildings.

Infrastructure Minister Shane Jones, who attended the talks, said the industry was like a patient who needed a reset or "you contemplate certain death."

"How do we effect a reset whilst not endangering taxpayer liability but giving greater confidence to the construction sector?" Jones said.

MONIQUE FORD/STUFF Building and Construction Minister Jenny Salesa said the Government needed to adhere to guidelines it already had around procurement.

In response to the problems in the industry, Building and Construction Minister Jenny Salesa said she was taking a minute to Cabinet instructing Government agencies to more closely follow an already existing set of rules around procurement.

Central government contracts make up about 18 per cent of the industry's output.

A "whole-of-life" costing model that sustainable costs in the long run instead of just up front would be emphasised.

Housing Minister Phil Twyford said too many agencies had followed a least-cost procurement model that had left some firms with too much risk in their projects.

"One of the issues here is about least-cost procurement and as Minister Salesa said we recognise even though Government contracts are a minority of work that this sector does Government has a responsibility to lead here," Twyford said.

"We're willing to take a hard look at the Government's approach to procurement."

Twyford said KiwiBuild was not at risk of cost overruns because this part of the industry was not particularly involved in that residential construction.

One social housing apartment block was under construction by Ebert.

Height CEO Warner Cowin welcomed the focus on whole-of-life costing.

"That's the trick to it, to understand the whole of life cost. If you buy something at the cheapest cost capital wise upfront it might not stay that way," Cowin said.

He said the whole industry - both people buying contracts and selling them - needed to some maturity.

"It relies on the maturity of the market to not pitch stuff at the lowest possible cost. It also relies on the buying agency understanding that is happening - that relies on the maturity of the buying agency."

Jones said it was important to "call a spade a spade" and acknowledge the sector was in really trouble.

"There's a huge duty on us to do nothing that worsens taxpayer liability, but also we are concerned. What are we going to do, outsource everything internationally if we can't keep a robust and sustainable construction sector in New Zealand? Our Government is not interested in that," Jones said.

Master Builders chief executive David Kelly, who attended the meeting with ministers, said Government could only do so much - the industry had to come to the table too.

"This isn't all about Government. There's been a general trend over a lot of time from a lot of clients to go to the least-cost model. Unfortunately far too many construction companies have ended up buying into that system."

"We as a sector need to step up. So we're undertaking some work ourselves around guidance to our members to really understand the risk they are taking on, to think harder about what they are signing up to."