High-strength 50mm diameter reinforcing steel bars in production at Pacific Steel, Ōtāhuhu.

Steel reinforcing bars made in Auckland for the City Rail Link project are the first of their kind to be manufactured in New Zealand.

The steel bars will help hold up the historic Chief Post Office when the rail tunnels are constructed beneath it and keep water out of excavation carried out below sea level.Difficult to source from overseas

Products like this are usually sourced from overseas, but this proved difficult for the CRL because offshore manufacturers could provide it only in quantities much greater than required.

CRL contractors Downer Soletanche Bachy liaised with New Zealand based suppliers over the possibility of manufacturing the bars locally, and Ōtāhuhu-based Pacific Steel took up the challenge.

Pacific Steel is New Zealand’s only reinforcing steel manufacturer. After successful trials, it has been engaged to make the bars, using local materials provided by New Zealand Steel in Glenbrook.Project more efficient thanks to NZ industry

Project Director Chris Meale said that, thanks to Pacific Steel coming to the party, the project has become much more efficient.

"It's great that our contractor has been able to work with a local business for mutual benefit and that in doing so we have created a first for the local steel industry," he said.

| An ourAuckland release  || September 12,  2017   |||

IPWEA is the professional organisation providing member services and advocacy for those involved in and delivering public works and engineering service in Australia and New Zealand.

Previously known as the Institute of Municipal Engineering Australia (IMEA), the organisation is expanding its traditional local government engineering focus to the broader public works and thereby covering all tiers of government as well as the private sector, where we have over 30% of our membership. Almost all of Australia and New Zealand's professional consultancy firms which specialise in public sector infrastructure including roads, water, power, rail, ports and airports - are members of IPWEA. Our private sector members bring thought leadership, innovation and a commercial focus to IPWEA's industry leadership.

The evolvement of IPWEA maintains the traditional expertise of local government engineering but by broadening the base of expertise and experience, adds a new dimension to public works professionalism in Australia and New Zealand.

| An IPWEA release  ||  September 10,  2017   |||

Building inspection pass rates are improving, but the substitution of inferior building products is still blighting the construction industry writes Alexia Russell for Newsroom

Cheap, inferior alternatives being used in housing projects as substitutes for code-compliant products are the number one bugbear of Auckland Council's inspectors. The inspectors say they are picking up most of the problems, but the work required to remedy such situations is holding up the city's much needed home-building programme. Tradesmen, on the other hand, believe a lot is being missed and they're sick of seeing products that have potentially disastrous repercussions further down the line, entering the country.

A highly successful recruiting drive in Canada by the council will help the situation. There are now has 12 new, fully-trained building inspectors on the job after a trip on which Auckland Council Building Control General-Manager Ian McCormick sheepishly admits selling the country as a package by showing them lots of pretty pictures.

The current building boom means the council's facing a situation where it invests heavily in staff training, only to see those people lost to desperately-needed project managing jobs in the industry.

McCormick says without a doubt the biggest problem for him at the moment is site supervision - having competent people guide and support increasingly complex builds, and engage and manage a host of subcontractors and specialists. "We are finding in the industry that too often project managers are having to run many jobs concurrently, racing from job to job," he says. "Project managers are going into jobs more complex than in the past, and in some cases are struggling."

Continue to read the full article here on Newsroom ||  11 September 2017   |||

A new Infrastructure Commission raises hopes of a more strategic approach to New Zealand infrastructure, says BusinessNZ.

Chief Executive Kirk Hope says the new body would be more politically durable if independent of the government of the day.

"It should also be independent of a single government department and made up of more than just a merger of the infrastructure and PPP units of Treasury."

The governance of the new body would matter to business and BusinessNZ offered to work with Government and other stakeholders to flesh out details.

"The new Commission should start with a long-term view of infrastructure needs set against a range of scenarios depending on New Zealand's likely growth prospects.

"Business would like to see more growth-enhancing infrastructure built using investment by private sector partners, recouped through usage, to reduce the funding burden on taxpayers," Mr Hope said.

| A BusinessNZ release  ||  September 2,  2017   |||

"The National Party’s announcement today that, if elected, it will set up an independent National Infrastructure Commission should have cross party support," says Infrastructure New Zealand Chief Executive, Stephen Selwood.

"Establishment of such a body will bring New Zealand’s infrastructure practices up to speed with Australia, the UK, Canada and other leading countries.

"The UK’s National Infrastructure Commission was established in 2015 to provide independent, strategic thinking, analysis and advice to address the UK’s long-term infrastructure needs.

"A New Zealand infrastructure commission needs to be charged with equivalent responsibility. This would include investigating and recommending responses to our most pressing issues in housing, freshwater quality and congestion, in addition to oversight of project delivery, procurement, and the national infrastructure pipeline.

"The size of the infrastructure workload ahead means we have to make the most of every dollar spent. Having a public entity working in New Zealand's best interests and with expertise in project delivery is critical.

"National’s announcement today is focussed on leveraging private sector capital and expertise through Public Private Partnerships.

"PPPs are an important component of any rational infrastructure delivery programme, but the Commission needs to encompass all forms of project delivery, regardless of whether or not private capital is involved.

"Successive surveys by Infrastructure NZ and other evidence shows that New Zealand’s infrastructure procurement can significantly be improved and international experience shows there are billions of dollars of benefit from doing so.

"Having our best and most experienced people involved when the Government buys large and complex assets like motorways, railways, schools, and hospitals minimises the risk of mistakes and capitalises on the investment opportunity.

"It’s not only individual projects which will benefit from a new body. A clear and committed national infrastructure pipeline has for many years been an industry priority. Businesses who deliver assets on behalf of governments need to know what’s ahead and if the Commission can provide greater certainty around this it will make a big difference to investment and productivity in the sector.

"These are the reasons why Canada, through Partnerships BC and Infrastructure Ontario, the UK, through the Infrastructure and Projects Authority and Scottish Futures Trust, and Australia through Infrastructure NSW and Major Projects Victoria have all picked up the model.

"Some of the greatest benefits could be realised from using the Commission to assist local government with its $50 billion infrastructure programme. Bundling council projects and supporting our smallest infrastructure providers with specialist knowledge will reduce project overruns and help provide better services at lower cost to ratepayers.

"For the Commission to be successful, it will need arm’s length independence from the Government, like the Commerce Commission or Reserve Bank, to ensure that it acts apolitically in New Zealand’s long term interests.

"A specialist infrastructure body is a really positive step forward for New Zealand. It is a bi-partisan response to New Zealand’s infrastructure needs and should receive cross-party support," Selwood says.

| An Infrastructure New Zealand release || September 1, 2017   |||

With a reported $11 billion dollars to be spent on strengthening infrastructure over the next four years, the New Zealand government’s pledged funding has fostered strong confidence among the domestic workforce.

In a survey conducted by global recruitment specialist, Michael Page, professionals in New Zealand rated the fourth highest in employment confidence within Asia Pacific. The Michael Page Job Applicant Confidence Index Q2 2017, evaluated the responses of mid to senior-level employees across industries and revealed New Zealand ranked 72 on the confidence index, above the Asia Pacific average of 64.

“The government is investing in infrastructure on the back of the population growth. This has created new job opportunities for professionals in the building sector including those skilled in civil engineering, residential property as well as commercial construction. This is where we are seeing the largest demand for talent right now,” observes Pete Macauley, Regional Director, Michael Page New Zealand.

Most notably, the record numbers of immigration to New Zealand has also driven growth in the construction, retail, manufacturing, consumer products and professional services industries. In view of the country’s hiring demand for professionals outstripping the supply, 79% of job seekers say that they are confident of securing a job in less than three months. In addition, 48% responded with optimism stating they see good employment opportunities in their areas of expertise and 68% of job seekers are confident the job market will get better in the next six months.

“We have seen organisations focus on promotion prospects for existing employees in the recent years which has resulted in strong optimism among professionals. However this has led to a highly candidate-driven employment landscape as professionals who can see a succession plan for themselves in their companies are unlikely to leave,” Pete Macauley shares his insights.

On attracting top tier candidates in New Zealand, Pete Macauley continues, “Companies are doing a very good job of retaining their best talent. A lot of human resources strategising has gone into ensuring learning and development as well as personal progression are well integrated into every employee’s career. Professionals in New Zealand are most concerned with selecting employers who can prove that they will progress on performance and continually invest in internal growth opportunities.”

Respondents to the Michael Page Job Applicant Confidence Index Q2 2017 also listed developing new skills (42%) and achieving better work-life balance (36%) as the top two reasons why they are most likely to switch jobs.

On top of investing heavily in organisational growth to enhance skills development, companies have also harnessed the latest technologies to allow employees their desired work-life balance. As more hiring managers recognise that flexibility as a talent attraction tool, efforts have also gone towards enabling professionals to do their job outside of the office and promoting dynamic working.

In New Zealand’s current hiring market, the strongest talent are aware of their position to demand the best compensation packages. Employers who can fulfill all their requirements for salary, career development and work-life balance will be best placed to secure top tier candidates for further business growth.

Editor’s note: The Michael Page Job Applicant Confidence Index Q2 2017 is a measure of how optimistic job applicants are about the current job market. The responses are based on those that applied for a job published on our Michael Page website in Q2 2017

| A SmartRecruitmentNews release  ||  August 19,  2017   \\\

Rod Oram goes under the covers of Fletcher Building's results for Newsroom and finds the source of its financial problems with project cost blowouts: corporate governance.

The table below from Fletcher Building’s results presentation on Wednesday clearly shows the company’s incompetent corporate governance.

Five years into the biggest, longest construction boom this country has ever seen our largest construction company has lost almost $300m on its $2.65bn order book for commercial buildings.

Two big projects – the Justice Precinct in Christchurch and the Sky City convention centre in Auckland totalling $737m of work -- account for the bulk of the losses.

This, though, is not a simple story of two bad projects.

Fletcher has written down the value of the rest of the order book of Building + Interiors, the commercial building business in its construction division. Breakeven is the best it hopes for on this $1.49bn of business, it announced at its results briefing.

Nor is this bad news a bolt out of the blue. B+I eked out EBIT of only $16m a year over the 12 years to fiscal 2016. Add in the infrastructure business, the other main part of the construction division, and Fletcher’s EBIT on all construction averaged only $32m a year over the 12 years.

That insight is on slide 30 of Fletcher’s results’ presentation to analysts. Anyone wondering how Fletcher could achieve only a 6.76% total return to shareholders over the past six years of booming construction and stock markets will find the 1hour 24 minutes’ briefing revealing.

Continue to read the full article here

| A Newsroom release by Rod Oram  ||  August 20,  2017   |||

Dunedin will get a new $1 billion plus hospital, in what will be the largest build of its type in New Zealand’s history, Health Minister Jonathan Coleman says.

Dr Coleman made the announcement with Prime Minister Bill English at Dunedin Hospital today.

“The Government is committed to ensuring the people of Dunedin and the wider Southern community receive quality hospital care,” Dr Coleman says.

“We have been assessing the options around refurbishing the existing site and building a new hospital. The decision has been made to rebuild.

“This would maximise the opportunity of having a purpose-built, state-of-the-art facility, while also minimising disruption to patients and staff.

“Given the scale of the project it is estimated to cost between $1.2 billion - $1.4 billion, making it the largest hospital rebuild in New Zealand history.

“The original plan was to simply rebuild the services block, but the indicative business case has determined that the ward block also needs replacing and that has increased the cost significantly from the original $300 million estimate.

“The Ministry of Health is working to secure an appropriate site for the new hospital, with a strong preference for a central city location. Depending on the location the new hospital will be opened in 7 – 10 years.

“Given the size of the project the Government will consider all funding options including a Private Public Partnership model.

“We are also taking steps to support the existing Dunedin Hospital while the rebuild takes place with an extra $4.7 million being invested into the Interim Works programme, taking the fund to $27.2 million.

“The programme includes the expansion of ICU to 22 bed spaces over the next 12 months. Taking the unit to eight ICU beds, 10 High Dependency beds and 4 beds which are flexible to be either as demand requires.

“Increasing the number of co-located beds in ICU will greatly improve efficiency and enable more effective care of patients.

“The programme also includes the expansion of the Gastroenterology Unit, which will support the roll-out of the National Bowel Screening Programme to the DHB.

“This is a once in a generation opportunity to build modern and sustainable health facilities that will meet the future needs of Dunedin and the wider Southern community.”

The new Dunedin Hospital will follow on from the completion of the new $77.8 million Grey Base Hospital on the West Coast, as well as the almost $1 billion hospital redevelopment programme in Canterbury.

The Indicative Business Case for Dunedin Hospital can be accessed here.

| A Beehive release  ||  August 19,  2017   |||

MONTREAL — WSP Global is moving to expand its engineering consulting business Down Under in a deal to acquire Opus International Consultants Ltd. valued at $280.5 million including debt.

OIC brings with it 3,000 people worldwide including 1,800 in New Zealand where WSP has had a small presence as well as expertise in water-related infrastructure, transportation and asset management.

WSP spokeswoman Isabelle Adjahi said the deal, which has the support of OIC's majority shareholder, also brings potential to win bids in New Zealand.

"If you look at the market in New Zealand, it's booming in terms of infrastructure," Adjahi said in an interview Monday.

WSP is offering to pay NZ$1.78 per share and a dividend of seven N.Z. cents per share to Opus shareholders. UEM Edgenta, which owns 61.2 per cent of the shares in OIC, has agreed to support the deal.

It will be WSP's largest acquisition since Alexandre L'Heureux moved up to chief executive of WSP Global (TSX:WSP).

The transaction will move WSP Global a step closer to its goal of having a workforce of 45,000 and C$6 billion of annual net revenues by the end of 2018.

WSP Global entered Australia and New Zealand in a modest way with the 2014 purchase of Parsons Brinckerhoff, a 13,500-employee global consulting firm, for US$1.35 billion cash.

Industry analysts said the transaction makes sense and demonstrates WSP is on the path toward reaching its strategic objectives.

Maxim Sytchev of Dundee Capital Markets said the offer leverages WSP's operations in core markets and takes advantage of Opus' reducing share price despite improved operating results.

"WSP is opportunistically acquiring a good quality company that has hit serious speed bumps recently," Frederic Bastien of Raymond James added in a report.

| A BCLocal release  ||  August 14,  2017   |||

Raimondi Cranes, an Italian equipment manufacturer owned by Saudi Arabia’s KBW Investments, has appointed Heavy Lift Designs (HLD) as its official agent in New Zealand.

Wellington-based HLD will represent Raimondi Cranes in New Zealand’s North and South Islands, conducting all installation and dismantling procedures.

Founded in 2014 by managing director, Eng Blake Hammon, HLD provides engineering services for New Zealand’s heavy lifting segment, following previous success in New South Wales, Australia.

The firm’s service offering includes technical lift planning, erection, dismantling, and site planning, as well as feasibility assessments, third-party verification, and equipment sourcing.

Commenting on heavy lifting-related activities in his domestic market, Hammon said: “I see New Zealand as the opportune place for HLD to launch new technologies; there is substantial activity in the construction and engineering sectors with room for a successful entrepreneurial-driven market entry.”

Under the agency of HLD, Raimondi Cranes’ topless tower and luffing jib models will be made available to clients across New Zealand, together with aftersales and technical support.

READ: Saudi-owned Raimondi supplies six cranes for French uni project

“HLD’s entire value proposition is based on bringing modern engineering solutions, developed and drafted with precision and care, to the construction industry,” Hammon added. “Raimondi Cranes is a fantastic, forward-thinking crane manufacturer; for this reason, we actively pursued the Raimondi agency appointment, and we’re looking forward to bringing the company’s highly reputable, solution based products to market.”

Raimondi Cranes’ partnership with HLD in New Zealand follows recent appointments of representatives in South Germany and Great Britain.

The moves form part of the manufacturer’s broader strategy to increase its market share in global construction hubs, according to commercial director, Mauro Masetti.

|  A ConstructionWeekOnline release  ||  August 14,  2017   |||