$1b tourism site busy despite receivership

Around 600 construction workers are on-site at the $1 billion Kawarau Falls tourism development near Queenstown. Photo / Supplied

About 600 construction workers are working on-site at the $1 billion Kawarau Falls tourism project near Queenstown, despite it being in receivership.

Chris Hunter, Hawkins Construction chief executive based in Parnell, said the project was one of his firm's largest and he visited it this month.

Of the 600 people on-site, about 300 were working on the Hawkins' job, which is the largest hotel rising on the site, he said.

"We're taking the overall risk for plumbing, roofing, schist, carpentry, etc. We have about 35 people on the site and our manager is Andrew Holmes who is the project director," Hunter said.

He backed the decision announced by receivers KordaMentha a few weeks ago to continue work on the huge project because it was at a crucial stage.

"In my opinion, you can't leave it at this stage. Work has to continue," he said.

In May, Melview (Kawarau Falls Station) Investments and Melview (Kawarau Falls Station) Development, were put into receivership by Australian lender BOS International.

The receivers decided work already begun on three of the six hotels planned for the site should be completed.

Hawkins is completing annual building work worth $500 million, up from $100 million a year five years ago.

Hunter said the firm had grown hugely to the point where it was now level-pegging with the giant Fletcher Construction in terms of workloads.

"Over a three-year cycle, we're sitting about the same," he said.

Fletcher, Hawkins, Mainzeal Property and Construction and Brookfield Multiplex are the largest builders.

Hawkins, owned by Auckland's McConnell family, has an order book standing at around $800 million and in the last month won the $118 million contract awarded by the Waikato District Health Board for the new Waikato Clinical Centre, creating work for up to 400 people.

In June, Hawkins was shortlisted for a large Australian prison development.

The Victoria government shortlisted three bidders for Ararat prison including Aegis Correctional Partnership comprising Bilfinger Berger, Commonwealth Bank, St Hilliers Contracting, Hawkins Construction and Programmed Facility Management.

The tender for the expansion of the prison and development of a new 350-bed building includes the design, construction, financing and ongoing maintenance over a 25-year term.

Hunter said the 18-week bid process had started but it would take some months before evaluation was completed and he expects the successful bidder to be named early next year.