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Pacifecon Analysis Of Top-end Building & Construction Activity In New Zealand During November 2009

Fuseworks Media
Fuseworks Media
Pacifecon Analysis Of Top-end Building & Construction Activity In New Zealand During November 2009

During November 2009, there were 36 newly announced projects in New Zealand, with an individual floor value of $5 mill +. This is an encouraging statistic to herald the New Year.

Government also has 6 projects at tender (existing work) compared to the 4 from the private sector.

These figures contrast with the value of Non-Residential Building Consents released by Statistics New Zealand which indicate that the value on an unadjusted basis fell by 5.6% in October compared with twelve months ago, with the largest decreases being in farm buildings and factories/industrial and the largest increases being in social/cultural/religious, especially sports facilities, and in hostels/boarding houses. The unadjusted value of residential building consents rose by 9.5% in October 2009 compared with a year ago.

Some major developments over $5 mill, as detailed here, were reported by Pacifecon in November 2009.

Of the newly planned top-end projects in New Zealand, 26 are private, 10 are in the public sector.

Regionally, 10 of the 36 projects (9 private and 1 government) are located in upper North Island (down to Taupo). Lower North Island (below Taupo but including Gisborne) has 9 projects, of which 2 are government and 7 private. South Island has 17 new top-end projects reported (10 private and 7 government).

An outstanding newly announced project is a joint-venture $200 mill Maori Cultural Village for an Auckland-based developer, Awataha Marae Inc Society, to be located in Shandong Province, China. Another notable project is a $25 mill pulp mill maintenance project in Kawerau being jointly tackled by Norske Skog Tasman Ltd and Carter Holt Harvey Ltd, with each participant's share to be on a self-contained basis.

Of the newly planned projects some are: UPPER NORTH ISLAND New Zealand Gardens (Qufu City, Shandong Province, China): A cooperation agreement has been signed between Awataha Marae and a major Chinese company for development of a Maori Cultural Village, as part of an overall theme park development in the Shimenshan Scenic National Forest Park. This will include an exact replica of the wharenui at Northcote ($200 mill). Developer: Awataha Marae Inc Society. Kawaha Apartments Ltd (Rotorua): Marketing to secure sales before construction has commenced on this 3 x 2 level apartment building with carpark and lap pool ($25 mill). Builder: McMillan & Lockwood BoP Ltd. St Davids Presbyterian Church (Kyber Pass Grafton, Auckland): Public meetings held for proposed new primary school on church grounds. School to cater to 300-450 pupils, years 1-6 ($5 mill). Developer: St Davids Presbyterian Church. Kiwi Income Property Trust (Auckland Central): Feasibility studies for proposed office tower development to cater as head office for a corporate entity ($130 mill). Developer: Kiwi Income Property Trust. Rotorua District Council: A stage 6 upgrade of the City waste water treatment plant. Selected tender for supply contract to open March 2010 and the tender for installation to open December 2010 with work expected to start early 2011 ($7.5 mill). Norske Skog Tasman Ltd and Carter Holt Harvey Ltd (Kawerau): Early planning for maintenance of pulp mill with work scheduled to start October 2011. Kawerau Mill has been split between these two companies ensuring either can shutdown separately ($25 mill total). Contractor: Transfield Worley Ltd [AKL]. Penrose New Interconnecting Transformer: Planning underway for a 250 MVA transformer located at Penrose, as part of the North Island & Northland Project ($5-6 mill). Developer: Transpower NZ Ltd. LOWER NORTH ISLAND The Wellington Company (Te Aro, Wellington): Planning underway for a new multi level building to provide recording and digital technology facilities ($20 mill). Project Manager: Gill Consultants Ltd. Axa NZ (Lambton Quay, Wellington): Planning underway for multi level refurbishment of ANZ Tower. Project Manager: Craigie Associates. Whitby Lakes Village (Porirua): Preliminary planning underway for ongoing development of a lifestyle village which includes a further 10 villas and common amenities ($5+ mill). Architect: Pacific Environments NZ Ltd.

SOUTH ISLAND Centra Building (Christchurch): Plans underway to remodel existing building into up-market office building with work expected to start early 2010 ($10 mill). Developer: Carter Group. Freyberg Developments Ltd (Christchurch): Early planning for residential development on former Rangers football Club land of 12 lots for individual residences and 23 x 2 storey 3 bedroom units in 3 blocks ($5+ mill). Designer: Weirwalker Architecture Ltd. Christchurch City Council: Preparing to approach central government to formally request funding for replacement of council social housing complexes at Andrews Crescent and Guthrey Court (11/12 FY), Brougham Village (12/13 FY), Willard Street and Carey Street (13/15 FY), Coles Place & Hennessy Place (14/15 FY), Complexes at Huggins Place, Sandilands, Elm Grove, Feast Place, Boyd Cottages, Gowerton Place, Bruce Terrace, Macgibbon Place, Glue Place and Cresselly Place (15/16 FY & 21/22 FY). Project estimated at $84.17 mill total. Beach Road Apartments (Picton): Early planning underway for new 20 apartment complex & boat storage block with work expected to start 11/12 ($7 mill). Architect: Matz Architects Ltd. Dunstan High School (Alexandra): Early planning of an upgrade to remaining 4 school blocks ($5+ mill). Pak'nSave Supermarket (Rangiora area): Notified Resource Consent submissions closed 7 December 2009 for new supermarket and self service fuel facility ($15 mill). Resource Management: Aurecon New Zealand Ltd [CHC]. While 4 projects (value $5 mill +) throughout NZ wide have been put on hold, only one of these was due to funding. At the tenders stage in November 2009 there were 6 top-end jobs in upper North Island, 4 in lower North Island and 3 in South Island. 6 are Government and the rest private, this representing a balanced mix between the two sectors. Of the projects being tendered some are: Waipa Networks (Te Awamutu): Office and workshop with truck wash attached at Tender stage ($6 mill). Project Manager: Design Management Consultants Ltd. Southern Spar (Avondale): Tenders close 27 November and work is expected to start February 2010 for a new warehouse and office building ($5 mill). Design/Build: Haydn & Rollett Construction. Mitre 10 Mega (Pukekohe): Tenders closed 4 November for a new Mitre 10 Mega store with a retail area, drive through and external garden and yard covers ($5+ mill). Developer: Mitre 10 [AKL]. Gisborne Wastewater Treatment Plant: Contract awarded November 09 for Contracts 1 and 2. Contract 1 includes the full industrial separation scheme, a pre-treatment facility for both industrial & domestic wastewater and 1 biological trickling filter tank at the Banks Street wastewater treatment plant. Contract 2 Involves construction of gravity sewers, pump stations & rising mains to enable separation of industrial flows in Awapuni industrial area and diversion of existing interceptor sewers to new Banks Street wastewater treatment plant ($21 mill - Contract 1 & 2). Local subcontractors & suppliers will be used where possible. 5 smaller contracts worth $3.6 mill also awarded. Engineer (Consulting): CH2M Beca Ltd [AKL]. Wellington Girls College: Registrations of Interest close 11 December 2009 from main contractors for construction of Pipitea Block. Work expected to start April 2010 ($5.2 mill). Project Manager: Arrow International Ltd [WLG]. Kapi-Mana School (Porirua): Selected tender open late Nov/early Dec 2009 for new facilities to cater for special needs students in the grounds of Mana College ($5+ mill). Project Manager: Arrow International Ltd [WLG]. Riversdale Beach Sewerage Scheme (Masterton): Council has short listed five preferred tenderers for the reticulated sewerage scheme. Work expected to start March 2010 with commissioning expected March/April 2011 ($6 mill). Engineer (Consulting): CPG New Zealand Ltd [WLG]. Air New Zealand Regional Lounge (Christchurch): Tenders close 11 Dec 09 which has been broken down into 3 separate contracts for construction purposes ($10 mill). Project Manager: Octa Associates Ltd [AKL]. Linz Building (Christchurch Central): Tenders close 25 Nov 09 for new office building. Developer: Christs College. Waimakariri District Council (Kaiapoi to Rangiora): This project is in 3 parts for which, Part 1 - tenders closed 4 November 09 for supply pipeline construction for a new water supply source for Rangiora township. Work to start 11 January 2010. Part 2 Prequalified contractors selected for headworks construction for a new water supply source for Rangiora township and tender documents to be sent end November 2009. Work to start Mar 10. Part 3 Prequalified contractors selected for transfer & reticulation pipeline construction for a new water supply source for Rangiora township. Design work is continuing on this stage & tender documents are expected to be sent out February 2010. ($15.34 mill total). Some 12 top-end projects of which half were private, reached the contract or commencement stage in November 2009. Of these, 3 are located in upper North Island (2 private), 3 in lower North Island (1 government), and 6 in South Island (3 private). The key project for November commencements is Dulux New Zealand in Lower Hutt.

Some of these at commencement stage are: BNZ Tower (Queen Str, Auckland): Refurbishment of 3 lowest floors with an upgraded modern facade. Still to be tenanted with possible upmarket gourmet food marketplace, medical centre and cafe ($8 mill). Builder: Watts & Hughes Construction Co Ltd [AKL] Kensington Park (Orewa): Stage 1B, Block 8 of residential development has had work started on it during November 2009 ($5+ mill). Builder: Hughes Construction Ltd. Hawkes Bay Expressway (Hastings): Contract awarded and work started mid November 2009 and likely to take 15 months to complete ($6.7 mill). Contractor: Higgins Contractors Ltd [Hawkes Bay] and A Smith Contracting Ltd [enabling work]. Dulux New Zealand (Lower Hutt): Work to start 23 November 2009 for factory rebuild and expansion of distribution facilities ($28 mill total). Completion by July 2011. Builder: Hawkins Construction Ltd [WLG]. Ashburton Business Estate (Ashburton): Stage 1 of new business and industrial park ($5.8 mill). Engineers (Consulting): Opus International Consultants Ltd [CHC] Oceana Gold Macraes (Palmerston): Work started in 2009 on a focused exploration programme at the goldfields targeted on defining near surface, open-pittable, resources at the northern end of the Hyde-Macraes Shear Zone ($5+ mill). Developer: Oceana Gold (Macraes - Mine Office).

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