Greater value for money
“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.