Fletcher Building puts a halt on new big jobs

Fletcher Building says its troubled unit won't be bidding on big new projects and will focus on finishing those on its books.

The company, which today announced that chairman Sir Ralph Norris would resign on the back of $600m losses at its Building + Interiors unit, also flagged uncertainty about its $800 million-plus Commercial Bay shopping and office tower rising on Auckland's waterfront.

"We continue to target a profitable completion of this project," it said of the 39-level Commercial Bay, "however given it has a long way to go we have provisioned for contingencies," the company said. It also said it would only now finish projects, not bid on big new ones.

"We have made the decision to refocus Buildings + Interiors solely on project completion, to ensure our resources are completely focused on this task. If the market dynamics change in the future we would reconsider our position."

Christchurch's Justice Precinct and the New Zealand International Convention Centre at SkyCity in Auckland are the main contributors to Fletcher's $660m losses.

The other projects which the company reviewed included:

Commercial Bay, Auckland East Prison, Christchurch Airport Hotel and work at Auckland Airport.