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Current as of 29/12/14 07:00AM NZST

Anne Gibson

Property editor of the NZ Herald

Fletcher calling in overseas grunt

NZ builder wants to enlist big firms from abroad to help win $4b in public private partnership contracts.

Fletcher Building has work at Auckland University. Photo / Greg Bowker
Fletcher Building has work at Auckland University. Photo / Greg Bowker

New Zealand's largest construction company will bring some of the world's biggest builders here for the $4 billion-plus new public private partnership contracts it wants to win.

Graham Darlow, Fletcher Construction chief executive, named Acciona of Spain, France's Vinci Construction, Spain's Ferrovial and Europe's OHL, saying he hoped to bid with them and score big new motorway, train tunnel, school and security jobs.

"These are very large international construction companies with experience in PPPs. These companies would provide much more in the way of funding and creating special purpose vehicles. We will provide the design and construction skills.

"These global businesses are able to manage PPPs through their term because most of the PPPs are 25 years long," he said.

Contracts to build the Puhoi to Wellsford motorway, Auckland's Central Rail Link, national school-building projects and the Auckland Prison at Paremoremo's rebuild are in the offing and Darlow wants them.

Fletcher Construction is contributing work worth $430m to the Waterview Connection Project . Photo / Greg Bowker
Fletcher Construction is contributing work worth $430m to the Waterview Connection Project . Photo / Greg Bowker


"There's over $4 billion of work coming in the PPP form and that's why we need to configure ourselves for the market," he said, telling how executives from some of these businesses had already visited.

"They like the opportunity that exists here. New Zealand is a very good place to do business. They're also probably talking to other builders," he said.

Fletcher already has $1.6 billion worth of work on, the biggest workload in many years and up on 2012's $1.1 billion.

But Darlow said that was only a portion of New Zealand's $11 billion to $12 billion annual construction market and Fletcher won only about a third of the jobs it tendered for.

"We're a lot smaller than people think," he said.

Despite the big workload, Fletcher has capacity and hopes to build SkyCity Entertainment Group's new International Convention Centre.

"We're really looking forward to that coming to the market. We've had initial discussions with SkyCity."

Fletcher's biggest job is on the Stronger Christchurch Infrastructure Rebuild Team where it will earn $500 million. Fletcher EQR in Canterbury is fixing 70,000 houses, installing 17,000 heat pumps and doing 47,000 emergency repairs. Its $430 million work on the Waterview Connection is via the Well-Connected Alliance which includes Beca, Tonkin & Taylor, Parson Brinkerhoff, Obayashi and McConnell Dowell.

Top 10 Fletcher Construction projects

Fletcher EQR: $2.5b job, completed 53,000 Canterbury house repairs out of 70,000 scheduled.

Stronger Christchurch Infrastructure Rebuild Team: $500m, in alliance with many other firms.

Waterview Connection: $430m, an alliance with many other firms for new Auckland tunnels and motorway connections.

MacKays to Peka Peka: $400m, alliance with New Zealand Transport Agency for a 23km long expressway on the Kapiti Coast.

Wiri Prison public private partnership: $257m, new 850-bed facility.

Auckland Manukau Eastern Transport Initiative: $102m, contract with Auckland Transport.

South Pacific Games facilities, Papua New Guinea: $120m, new aquatic centre and main athletics stadium.

Fonterra headquarters: $90m, new Wynyard Quarter head office.

The University of Auckland new science block: $140m, demolition and upgrade of campus facilities.

Rangiriri Bypass: $80m, Contract with Transport Agency in the Waikato.

* Note: all contract values state Fletcher's share of the job, except for the first EQR job where the entire value of the work is stated.

Source: Fletcher Construction.

- NZ Herald

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