KEY POINTS:
The public sector is dominating much of the new building work under way in the $11 billion construction sector.
A report out today from consultants Pacifecon Construction shows how local and central government work is one of the big driving forces in the sector as the private
sector suffers harder times.
But the report also predicts trouble ahead for builders and says this month has been particularly lean for new project announcements and starts.
"Bidding for the available government work will become extremely competitive as profit margins are trimmed," Pacifecon's report says.
One of the biggest local government jobs, let to Hawkins Construction, is the $45 million carpark repairs at Auckland's Aotea Centre, the $9.9 million facade upgrade and the $26 million Aotea Square streetscaping.
Other big government jobs are the Auckland Regional Transport Authority's upgrade of Morningside and Onehunga railway stations, a Tamaki innovation centre by Auckland University and the Manukau City Council, Hamilton City Council's $13 million stormwater job in Rotokauri and Ontrack/Ports of Auckland's $9 million inland interchange at Wiri.
"Several new government-sponsored projects were reported at the top end. In October and November, a disappointing private sector performance was offset to some extent by government activity, while the locus of new work has been in the South Island, particularly in the lower region," the report says.
Pacifecon lists four big private sector jobs worth more than $10 million in Auckland. These are:
* The $30 million Fletcher Building industrial subdivision at Wiri. Fletcher will pour more than 1 million cu m of fill into its disused North Wiri quarry to create nearly 40ha of industrial land.
* A 4362sq m three-level retail and office project by Neville Holdings at Greenlane.
* St Kentigern College's administration and student services block at Pakuranga.
* The next stages of a $54 million retirement village at Warkworth by Summerset Holdings.
"New projects over $10 million in value represent an indicator of the short-term shape of things to come for the building and construction market in New Zealand. Among the new developments in the private sector announced for the upper North Island in October and November, four at the top-end of the market were in Auckland," Pacifecon says.
Fulton Hogan's work is listed in the report as being the $13.3 million runway extensions at Rotorua Airport, $37 million highway resurfacing in Opotiki, Kawerau and Whakatane and part of an alliance involved in $166.3 million of Auckland motorway work for the NZ Transport Agency.
Fletcher Construction's $26 million job building new student services and library replacement at Waikato University, Kalmar Projects' work building 60 places at St Lukes for Housing NZ and Argo Construction's $16 million multipurpose stadium in Whangarei all feature in the report.
BUILDING ON
Figures from Statistics NZ for year to October:
* Value of all building work: $11.06 billion
* New house starts: $6.58 billion
