Road cash gives highway of opportunity for firms

The funding breakthrough to build $650 million worth of new roads in the Western Bay could result in the creation of New Zealand's biggest single roading contract.
Last week's announcement that nearly all the funding shortfall had been found for the network of new highways in and around Tauranga has prompted a think-big response from the contracting industry.
Contracting Federation chief executive Richard Michael saw huge opportunities springing from the series of projects over 10-years - starting with the $240 million Harbour Link expressway and ending with the $150 million Northern Arterial to Te Puna.
Mr Michael was confident that New Zealand's contracting industry could handle the projects, even if they were let as one massive back-to-back contract - the biggest ever tendered.
He believed they could compete with overseas contractors on price, engineering and project management expertise.
The funding package - which included a one-off $150 million Government grant - showed what could be achieved when councils really got their act together, he said.
Mr Michael said the issue was more about the intensity of the work than the overall cost. Running the projects back-to-back meant a solid block of work over many years and that made it very attractive to the industry.
He disagreed with the commonly held view that the country's contractors were stumped by the amount of work around.
"There are contractors with the capacity to go the work right now. The industry is very resilient and growing all the time."
Mr Michael said there would be some economies of scale from letting it as one contract. It would encourage keener prices on the supplies and labour force.