During September 2010 there were 101 projects over $5.0 mill in individual construction value at all stages in New Zealand: 23 new, 35 out to tender and 43 ready to commence. Of the total figure, 48 were in the private sector, 51 Government-funded and 2 public private partnerships. Analysed by region, one was national, 44 in UNI (Upper North Island down to Taupo), 45 in LNI (Lower North Island below Taupo but including Gisborne) and 11 in SI (South Island). The top-end figures above for September should be interpreted against a fall in building consents of 6.6% in August compared with the same month last year as reported by Statistics NZ.

In comment, the volume in top projects nationally reflect the ongoing stimulus of Governmental pump-priming; the upsurge in project numbers should be noted for LNI; as well as the anticipated immediate downturn of major project activity in SI due to the Canterbury earthquake on 4th September as most reconstruction projects so far have been in the lower/medium end of the market as those above the $5.0 mill threshold are subject to design and approval time-lags. However, rehabilitation of the Christchurch region is expected to escalate building and construction activity in New Zealand by something of the order of an eighth once in full swing, especially benefitting the residential market which has long been in the doldrums.

Christchurch City Council was recommended by its advisors last week to demolish 160 Manchester Street. The Council is also considering demolition of 461A-469A Colombo Street and 192 Madras Street and for repair, failing which demolition, of 580 Ferry Road. The historic Ohinetahi Homestead is required to fix its now insanitary condition before seeking permission to repair or rebuild the structure. Saby's bridge has already been demolished and will need replacement in the absence of an alternative route.

According to Aaron Gilmore, M.P., there are 50,000 earthquake-damaged properties in Canterbury assessed to have suffered up to $100,000 damage each. Pacifecon is identifying damage to non-residential properties and structures and up to end September had prepared detailed briefs in over 200 such instances.

Noteworthy new planned projects reported during September include: UNI- PRIVATE New Lynn Town Centre Renewal: Multi-million $ PPP between Waitakere City Council and Infratil Property as new stage of Council's transport oriented development. Far North Holdings Ltd and Far North District Council: Stage 1 PPP development of Waterfront at Paihia. ECC: $17 mill. Borneo Investments Ltd: Stage 1 subdivision at Kerikeri. ECC: $10+ mill. GOVERNMENT NZ Transport Agency: Long-term proposal for road tunnel under Kaimai Ranges linking Tauranga & Waikato. ECC: $1.5 billion. Massey University: Student amenities building at Albany, Auckland. ECC: Under $15 mill.

Middlemore Hospital (Counties Manukau District Health Board): Phase 2, Stage 1 development comprising 3-level buildings housing 14 operating theatres, 18 high dependency units, 40-bed assessment & planning unit, clinical & non-clinical units, etc. ECC $150 mill overall project. LNI - PRIVATE Mainfreight Ltd: Freight terminal ($10+ mill) in Wellington Central. Mainfreight Ltd: Freight terminal ($10+ mill) in Palmerston North. Mars Petcare Australia Ltd: Additions & alterations ($13 mill) in Wanganui. Mitre 10: Retail store ($10+ mill) in Home HQ Hastings bulk retail centre. GOVERNMENT Vision Seaview Gracefield 2030 (Hutt City Council): Multi-million $ business hub in Lower Hutt. NZ Transport Agency: Cycle & walkway alongside SH2 between Horokiwi & Ngauranga.) SI - PRIVATE Kaiapoi New World (Foodstuffs (South Island) Ltd: Working through consent process to rebuild. ECC: $10+mill. Lyttleton Port Co Ltd: Earthquake restoration of fundamental connections between wharves and solid land is expected to cost tens of millions $. Canterbury Hockey Association: Porrit Park Sports Complex may be beyond repair and require replacement due to earthquake. ECC: $7.5 mill. GOVERNMENT Christchurch City Council: Earthquake restoration of sewer and water lines in Avonside, Avondale, Bexley, Brooklands, Dallington, Halswell & Southshore as well as 2 wastewater pumping stations in Avonside Drive, a water pumping station at Palmers Road and damage to Bromley oxidation ponds, total estimated at $100+ mill.

Major projects of note at the tendering stage in September were: NATIONAL - GOVERNMENT Ultra Fast Broadband [UFB] (Crown Fibre Holdings and Ministry of Economic Development): 15 tenders called regionally for roll-out (4 in UNI, 4 in LNI and 7 in SI). ECC: $1.5 billion nationally spread over 10 years. Also tenders for Rural Broadband called by the Ministry. ECC: up to $300 mill UNI - PRIVATE Fisher & Paykel Healthcare Ltd: Office building ($10+ mill) in East Tamaki, Auckland. Papa Kai Nga Housing: 10 houses and holiday accommodation, possibly staggered, in Rotorua. ECC: $12 mill. Victoria Quarter No 1 Ltd: Stage 2 apartment building redevelopment in Victoria Park, Auckland. ECC: $25 mill. Prendos Ltd: Apartment block remedial works at Orewa, Auckland. ECC: $10+ mill. Westlake Girls' High School: Multi-level carpark and covered tennis/netball courts. ECC: $18 mill overall including other phases. GOVERNMENT Waikato District Health Board: Older Persons & Rehabilitation Services Building in Hamilton. ECC: $42 mill. Manukau City Council: Carpark building at Manukau, Auckland ECC: $14.75 mill. Ngaruawahia Bypass: Design/construction of Section Stage 2 on SH2, Taupiri-Horotiu, Waikato Expressway. ECC: $161.2 mill. Lorne Street Streetscape (Auckland City Council): Upgrade (Stage 2, Part 1) outside library, ECC: $10.9 mill overall, including other phases. Onehunga Foreshore (Auckland City Council): Restoration work to commence January 20111. ECC: $28 mill. Middlemore Hospital (Counties Manukau District Health Board): Phase 1, Stage 1, of Clinical Services Block. ECC: $150.0 mill overall project. Whakatane Hospital (Bay of Plenty District Health Board): Major upgrade. ECC: $65 mill. NZ Transport Agency: SH maintenance in West Waikato. ECC: $10+ mill. LNI - GOVERNMENT Homebush Wastewater Treatment Plant (Masterton District Council): Upgrade. ECC: $25 mill. Greater Wellington Regional Council: Stage 1 of Stuart Macaskill Lakes increased storage capacity and seismic enhancement. ECC: $10 mill. SI - PRIVATE Legacy Corporation Ltd: Apartment blocks in Nursery Road and Cashel Street, Christchurch. ECC: Over $5 mill each.

Top-end commencement in September included:

UNI - PRIVATE Formule 1 Hotel, Auckland Airport (Auckland International Airport Ltd & Accor Hotels & Resorts): Bldr: Scarbro Construction Ltd. ECC: Under $15 mill. UNI - GOVERNMENT Te Rapa Bypass (NZ Transport Agency): Cntr: Fulton Hogan Ltd. ECC: $194 mill. Whangarei District Council: Stages 1 & 2 of wastewater upgrade south of Whangarei. Cntr: Transfield Services NZ Ltd. ECC: $40 mill overall. Whangarei Hospital (Northland District Health Board): Stage 1A acute mental health unit. Bldr: Mainzeal Property & Construction Ltd. ECC: $25 mill. Maleme Street Pump Station (Tauranga City Council): Cntr: Downer EDI Works Ltd. ECC: $13 mill. University of Auckland: Refurbishment of Building 206. Bldr: Aspec Construction Ltd. ECC: Under $15 mill. LNI - GOVERNMENT Gisborne District Council: Operation and maintenance of water, wastewater and stormwater system. Cntr: Fulton Hogan Ltd. ECC: $17.8 mill. BRANZ Ltd: Refurbishment & remodelling of research centre at Porirua, Wellington. Bldr: Fletcher Construction Co. Ltd. ECC: $11.4 mill. SI - GOVERNMENT Waimakariri District Council: Road maintenance. Cntr: SICON Ltd. ECC $17.2 mill.

In its press release last month Pacifecon suggested that potential bottlenecks in earthquake remediation could arise in Canterbury due to existing planning controls and building regulations. That adequate manpower would flow into the area but that shortages of materials might be experienced. That an ad hoc authority be established, perhaps a Canterbury Reconstruction Commission (modelled on that of Darwin in 1975) to resolve conflicting demands for resources, to supervise contracts and to guard against opportunistic escalation of costs. That top priority needs to be allocated for restoration of tourism facilities in Christchurch as a gateway to South Island.

The press release also stated that existing work on the planning boards in South Island is likely to be put back substantially. That Canterbury was likely to resolve the building and construction slowdown that has been gripping New Zealand and that reconstruction would take at least 12-15 months and possibly longer (since estimated by others at up to three years) and that steps be taken to ensure that there is no shortfall between insurance payouts in the short-term to enable rebuilding to proceed should this prove inadequate in the light of ultimate regulatory demands for compliance.

To date Pacifecon sees no reason to amend these comments which were reproduced in summary by the "Christchurch Press" and Radio New Zealand but received sceptically by some local sectional interests.