Arrow International changes tack, cuts back tender bids after Auckland project problem

Arrow International is changing the way it works. Photo/Getty Images.

Construction business Arrow International is changing the way it works, cutting back on tender bids and negotiating directly with clients for its jobs, according to a founder.

Bob Foster, the Christchurch-based co-founding director of the business, said the business had an issue with one Auckland job but was resolving that and altering its business model.

"We're trying to wind down the amount of tender work we do and doing more negotiated work," Foster said.

Arrow, one of this country's larger builders with a national spread, works on retail, commercial, Government, tourism, education, retirement sports and recreation and residential work.

Foster acknowledged problems with an Auckland project Arrow had worked on but refused to name it or the client or say what had gone wrong.

"You naturally do get the odd bad job but I think that information is confidential to the company and you just deal with it. You sort it out with the clients. We've got one job with a few concerns in Auckland and we're hoping to get that sorted out with the clients in the next weeks," he said.

Arrow says was founded by Foster and Ron Anderson, "two blokes who believed there was a better way to approach projects."

Arrow's work includes Queenstown's new iFLY flight simulator, a $28m 18-level apartment project on Auckland's Airedale St and a $40m 21-level apartment block on Beach Rd, Parnell.

Foster and co-founder Ron Anderson both appeared on the National Business Review Rich List, estimated to each have assets valued at about $130m and said work included a new 488-room student accommodation complex in Auckland and a 20-level Wellington apartment block.

Foster was reported to have interests in Wanaka's Aspring Lifestyle Retirement Village and the Mt Eden Gardens village in Auckland.

Arrow had about 450 staff and annual revenues of more than $350m.