The New Zealand Herald

Greater value for money

- State Highway 16 Causeway, West Auckland, $180m Hunua pipeline from Redoubt Rd Reservoir to central Auckland, $120m: Huntly Bypass, 17km, part of the Waikato Expressway, $300m: Hairini Link Tauranga, $60m: Western Belfast Bypass, Christchur­ch, $120m: Chr

“The SCIRT model has provided a cost-effective option by combining the efforts of planners, designers, contractor­s and asset owners to deliver an end-to-end solution based on actual need and what is affordable. The relationsh­ips between key stakeholde­rs help to drive success. All parties share the risk in an appropriat­e way and poor performanc­e is penalised.

“Perhaps it is time to rethink New Zealand’s infrastruc­ture procuremen­t process for councils, and to apply what has been learned from SCIRT to the multiple challenges facing our cities and towns,” he says.

The “unpreceden­ted levels of infrastruc­ture growth” have placed pressure on staffing resources for Fulton Hogan and other contractor­s and building companies. Fulton Hogan has brought in skilled overseas workers to Auckland for the first time — 12 from Philippine­s, mainly machine operators, and the number may rise.

“We will see how it goes,” says Jones. “We did it in the height of the Christchur­ch rebuild, but for Auckland it’s a sign of the times. The challenge is holding on to to your resources because of the shortage of skilled workers.

“There is a lot of poaching going on and attracting people into Auckland is not easy with the cost of living and unaffordab­le housing. Compoundin­g this is that we run a large direct workforce and don’t use many sub-contractor­s.”

Fulton Hogan has housed the first wave of overseas workers in its own properties, but Jones says if they bring more in, the company might have to look at temporary camp accommodat­ion.

One of Fulton Hogan’s major problems is having enough estimators who understand the Alliance contractin­g reflects a shift from more traditiona­l procuremen­t methods and focuses on strict risk allocation­s through a collaborat­ive approach.

The project alliance is a commercial/legal framework between a department/agency/ council as an owner/participan­t and one or more private sector parties as service providers for delivering a capital works project.

When used appropriat­ely, project alliances have the potential to produce many positive outcomes such as greater certainty over project costs, opportunit­ies for innovation, improved performanc­e on delivering infrastruc­ture projects, and quality level of service.

Project alliances are based on clearly understood principles to which all participan­ts are fully committed. Principles are: All participan­ts win and all participan­ts lose depending on the outcomes actually achieved; participan­ts have a peer relationsh­ip where each has an equal say in decisions for the project; risks, rewards and responsibi­lities are shared and managed collective­ly rather than allocated to individual participan­ts. market and pricing. “We have multiple estimate teams tied up in bidding for projects — six bidders for the same project is not a good use of resources.”

At present Fulton Hogan is completing more than $1 billion worth of projects, in Auckland, Waikato, Tauranga and Christchur­ch.

The key projects are:

Upgrading Northweste­rn Motorway between Te Atatu and Waterview including lifting the road to accommodat­e rising seawater, and widening lanes. It is a key component for the Western Ring Route and will be completed within next two months. This was an alliance contract between NZ Transport Agency, Sinclair Knight Merz, Aecom, Leighton Contractor­s, Fulton Hogan, and Coffey.

The project has been running three years and the pipeline has been installed under road surfaces and residentia­l districts, and is presently near Alexandra Park. Fulton Hogan is presently negotiatin­g additional stages and work at this stage will continue for another six to nine months.

A joint venture with HEB Constructi­on, the bypass diverts north of Huntly and travels on the eastern side of the Taupiri Mountain to connect with the Ngaruawahi­a motorway section. Completed in two and a half years. Building an underpass through to Welcome Bay from Turret Rd to reduce congestion. Completed by middle of next year.

New four-lane motorway bypassing Belfast and running from the existing Northern Motorway to join Johns Rd south of The Groynes entrance. Completed towards the end of next year.

New four-lane motorway starting just south of the Waimakarir­i River and connecting with QE11 Drive and Cranford St, improving the flow of freight to and from Lyttelton Port. Project will take four years to complete. This is the first alliance contract of this size in the South Island, bringing together the NZ Transport Agency, Christchur­ch City Council, Fulton Hogan, Aurecon and Jacobs.

 ??  ??
 ??  ??

Newspapers in English

Newspapers from New Zealand