February Construction News

MinterEllisonRuddWatts in the Market

ADLS Property Law Conference – Rent reviews

On 20 February, Construction Partner Janine Stewart and Property Partner Amanda Spratt presented at the ADLS Property Law Half-Day Conference at Ellerslie Events Centre. Janine and Amanda discussed the key concepts and issues in rent reviews and practical steps lessors and lessees can take when negotiating the terms of leases to minimise the chance of a rent review dispute evolving down the track. Read the full paper here.


Building Legends Skills Workshop

On 27 February, Senior Associate Jordan Oldham was part of a panel at the New Zealand Institute of Building’s “Building Legends” Skills Workshops for Emerging Construction Managers. Jordan joined senior representatives from Hawkins and RCP to discuss common amendments to extension of time provisions in standard form contracts, legal issues relating to extension of time claims and after the claim considerations.


Article on Coronavirus – managing interruptions to trading

On 7 February, our Dispute Resolution team published an article discussing the effect that Coronavirus may have on supply contracts, and when force majeure clauses may be invoked. The article does not discuss Coronavirus in the context of construction contracts (for example, rights and obligations under the NZS:391X suite). Please contact our construction team if you would like discuss the effect that Coronavirus may have on such construction contracts. Read the article here. 


Market Activity

New Zealand’s first modular hotel opens

Arden Hotel, New Zealand’s first modular hotel, has opened in Christchurch. The 88-room hotel was due to be opened two years ago but consenting problems and theft of exterior aluminium panels caused it to suffer significant delay. The hotel pods were constructed by TCL Modular Construction in its Vietnamese factory. TCL Modular Construction already has other modular projects underway including hotels in Tekapo, Napier and Auckland.

Full article here


Government announces $12 billion infrastructure spending

The Government has announced a $12 billion spend on infrastructure projects. $6.8 billion is to be spent on transport, with $5.3 billion of this on roads and $1.1 billion spent on rail. The majority of the transport funding will be spent at the top of the North Island in Northland, Auckland, Waikato and Bay of Plenty. Hospitals and schools will also receive funding, including dedicated funding to maternity care, children and mental health.

Full article here


Christchurch contractors shortlisted for Earth’s iciest rebuild in Antarctica

Three Christchurch contractors, Armitage Williams Construction, Leighs Construction and Naylor Love Canterbury, have been shortlisted for the Scott Base rebuild in Antarctica. The rebuild includes three large interconnected buildings and helicopter hangar. Two representatives from each contractor flew to the site in mid-February and will now prepare detailed reports outlining how they could build the new base. The preferred contractor will be chosen by March 2021.

Full article here


Court declares movable vehicle is not a building in landmark case

The District Court has ruled that a caravan is not a building and therefore is not required to comply with the requirements of the Building Act 2004. The case arose following an order from the Hurunui District Council that a caravan be either demolished or modified so that it complied with the Building Act. The owner applied for a determination from MBIE and appealed MBIE’s decision to the Christchurch District Court. The Court overturned MBIE’s decision on the grounds that the caravan was a vehicle because it was registered, warranted and was not immoveable. The owner considers the decision is a big win for tiny home owners across New Zealand.

Full article here


Demolition to begin in preparation of construction of Dunedin hospital

Demolition is due to begin in March on one of the two blocks that will form Dunedin’s new hospital (set to cost well over $1 billion). Contractor Ceres New Zealand LLC, who did much of the demolition work for the Christchurch rebuild, has been engaged to clear existing sites, including the former Cadbury chocolate distribution warehouse and Ministry-owned buildings. The Cadbury block will house the hospital’s main inpatient building, intended to be completed by 2028, with the smaller outpatient and day surgery building intended to be operational by November 2023.

Full article here


Tainui Group Holdings to build Hamilton base for ACC

Hotel and property developer Tainui Group Holdings intends to build a $50 million-plus, four-storey office complex for ACC in Hamilton’s city centre. The complex will be owned by the commercial arm of Waikato-Tainui, who will lease it to ACC for 15 years with further rights of renewal. It is expected to house 650 Hamilton ACC staff. Building will start in the last quarter of this year with a target completion date of October 2022.

Full article here


Greater Christchurch Regeneration Amendment Bill introduced to Parliament

The Greater Christchurch Regeneration Amendment Bill has been introduced to Parliament to amend the Greater Christchurch Regeneration Act 2016 to hand over quake regeneration activities to local leadership. The Bill aims to disestablish the Crown-Council entity, Regenerate Christchurch, and extend the time Land Information New Zealand has to reconfigure titles in the Ōtākaro Avon River Corridor. If passed, the majority of the Bill’s changes will come into effect in the middle of this year.

Full article here

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