March Construction News

MinterEllisonRuddWatts in the Market

James Dow presents at New Zealand Infrastructure Funding Conference

On 19 March, Senior Associate James Dow presented at the New Zealand Infrastructure Funding Conference held at the Crowne Plaza. James spoke on how the PPP model works best in the New Zealand market including a discussion on alternative PPP funding and financing options.

Sarah Sinclair and Tom Fail attend Infrastructure New Zealand’s Delegation to Asia 2019

This month, Infrastructure Partners Sarah Sinclair and Tom Fail have been part of Infrastructure New Zealand’s Delegation to Asia for 2019. The delegation led by Infrastructure New Zealand traveled to Singapore, Hong Kong, Beijing and Shanghai to investigate key topics including road pricing, integrated transport and urban development, and new cities development.

Article on who bears the risk on construction contract claims published in LawNews

LawNews featured Partner Janine Stewart and Solicitor Charlotte Marsh’s article discussing the distribution of risk in construction contract claims. Read the article here.

Article on key issues facing the construction industry published in LawNews

LawNews featured Senior Associate Scott Thompson and Solicitor Charlotte Marsh’s article discussing the positive outlook for construction in the face of industry-wide issues. Read the article here.

Article on Body Corporate S73368 v Otway published in Legalwise

Legalwise featured Senior Associate Julia Batchelor-Smith and Solicitor Frank Brown’s article discussing the significant decision in Body Corporate S73368 v Otway. Read the article here.

Market Activity

Contractor secured for Metro Sports Facility in Christchurch CBD

Australian company CPB Contractors have signed a $221 million contract with Crown company Ōtākaro to build Christchurch’s $301 million Metro Sports Facility. The Facility will include a 10 lane 50 metre pool, a dive pool, five hyroslides, several indoor courts for various sports and several other training facilities. The build will provide hundreds of jobs to New Zealand’s workforce and inject money into the local economy. It is anticipated to host eight to twelve international events annually.

Full article here

‘Green’ hydrogen: Could it save Taranaki’s energy industry?

A recent report released by Jacinda Ardern considers Taranaki’s future is in “green” hydrogen. Hydrogen is already produced in Taranaki from natural gas. The report forecasts that in future, natural gas will be increasingly produced using electricity to split water, with the only emission being oxygen. The outcome of this is “green” hydrogen. Hydrogen offers Taranaki an enormous economic opportunity, with the potential for hydrogen to be used as a fuel, as feedstock for products such as urea and methanol, or to store electric energy for long periods of time. Taranaki is well-positioned to lead New Zealand into a low-emissions future.

Full article here

Sustainable buildings a ‘new era’ in construction in Tauranga

Tauranga developers are investing millions in making commercial buildings sustainable, saying sustainable buildings make good economic sense in the long run. Some of Tauranga's newest builds have adopted a sustainable approach, including the $42 million Mainfreight logistics hub, the $60 million University of Waikato CBD campus and Zespri's $40 million hub in Mount Maunganui.

Full article here

Prefab industry at tipping point in wait for government reforms

The prefabrication industry is at a tipping point as it waits for the government’s building reforms. Prefabrication is the manufacture of individual components or whole houses offsite before transferring them to building sites. Housing Minister Phil Twyford considers prefabs will have a major part to play in delivering the government’s 100,000 affordable homes. If successful, KiwiBuild could invoke long-term transformation for how New Zealand builds its houses. Building and Construction Minister Jenny Salesa has signalled that major regulatory changes are on the way, including to the 15-year-old Building Act.

Full article here

Marton couple's kitset house fails council code of compliance, despite engineer's approval

An elderly couple are facing a $200,000 fine in relation to their kitset home failing its code of compliance. The couple had contracted with Quickbuild and two Marton builders to assemble their home. When the Rangitikei District Council examined their home, inspectors found Quickbuild had supplied bearers that were not in the pre-approved building plan. The couple were warned that they could face a $200,000 fine if they failed to fix the bearers before 4 March 2019.

Full article here 

Submissions in for proposed Kaimai Wind Farm

Submissions have closed for the $180 million proposed Kaimai wind farm. The proposed farm comprises 24 large-scale wind turbines over 1304 hectares near Rotokohu Rd on the northwestern area of the Kaimai Ranges. Of the 220 submissions sent to the Hauraki District Council, 157 were opposed. Of the 143 submissions sent to the Waikato Regional Council, 96 were opposed. Kaimai Wind says the farm has the potential to assist in the Government's target for 90 per cent of electricity to come from renewable sources by 2025.

Full article here

Million dollar apartments in Tauranga may have had Code of Compliance issued in error

Owners of apartments at Tauranga’s Cayman Apartments have launched a $36 million lawsuit against the Tauranga City Council after discovering the Apartments’ Code Compliance Certificates may have been issued in error. The Apartments body corporate conducted an investigation that they allege revealed a wide range of building defects and showed negligence from the builder and council inspectors. The alleged defects include issues surrounding weathertightness, basement drainage and stormwater.

Full article here

Whangarei hotel and entertainment precinct and ball clock get PGF funding

The Government’s Provincial Growth Fund will be giving $2 million for two tourism initiatives in Whangarei. The fund will give $1.3m towards the completion of a feasibility study and business case for the development of the Riverside Hotel and Entertainment Precinct. It will contribute another $750,000 to help build a full scale version of an operational rolling ball clock to promote Clapham’s National Clock Museum. Tourism Minister and Te Tai Tokerau MP Kelvin Davis considers the initiatives will further enhance Whangarei as a tourist destination and support the region’s economic growth.

Full article here

Auckland building boom tops $9 billion with a surge in commercial construction

Auckland commercial construction reached a record high of $9.15 billion of building work in 2018. This was 16 per cent higher than 2017 and more than double the national growth rate of 7.3 per cent. There is a shortage of workers in the construction industry, with over 850 Auckland construction jobs currently listed on job sites like Trade Me and Seek. Canterbury is the second highest region of commercial construction with $3.7 billion of building work in 2018 and Waikato the third highest with $2.07 billion in 2018.

Full article here

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