Slowdown predicted in construction

By Tom Clarke

A fall-off in major construction projects in Auckland towards the middle of next year is being predicted by the new president of the Institute of Building, Nigel Ainley.

Many people are trying to get work done between now and Christmas, he says, and that demand is stretching the industry in a similar way to the boom period of the mid-80s.

But by the middle of 2000 it will have slowed considerably in Auckland.

"It'll depend a little on who wins the elections," he says.

"If Labour gets in, I expect there will be a little more activity than if National gets in because Labour will put more money into developing social services such as health and education."

No matter who wins, some health, education and infrastructure work is likely, he says, and there may be some work associated with the tourism and exports sectors.

"But any other construction is likely to be restricted to lower-rise two or three-storey apartment buildings on the periphery of the city."

Mr Ainley, who is general manager of Hartner Construction Ltd, says the expected slow-down in Auckland is one reason why his company wants to increase its work in the Pacific and in other parts of New Zealand. The company has projects in Auckland, Wellington and the Bay of Plenty. It has just opened an office in Fiji where it has won a contract to build the Trend West time-share resort on Denarau Island. Hartner is also looking at other projects in the Pacific.

As president of the institute, Mr Ainley is pushing for increased recognition of the recently introduced register of construction managers. He says this will raise standards of management and professionalism in the construction industry.

The registration process has been created for people with proven ability in successfully managing projects of at least $10 million.

"There are a lot of people out there who think they can manage large projects, who don't do it very well, and the registration gives an assurance to all parties involved that they are getting someone who is capable," he says.

"It's a win-win situation because at the end of the day, a building site is only as good as the person that's running it.

"The client wins because they know they're getting a competent person to run the site, the consultants win because they're being obliged to work under tighter and tighter fees and it's to their benefit to know that they've got somebody to rely on to do the job properly. Employers win because they know they're getting a competent manager, and the individuals themselves gain because the qualification gives them status."

Gaining registration as a construction manager is based largely on experience, backed up by peer review and examination.

Mr Ainley has been involved in the building industry since leaving college. He was born in Hampshire, England, and graduated from Brighton Polytechnic with a BSc (hons) in building technology and management, before moving to New Zealand in 1975.

He joined Mainzeal where he held a number of management jobs until joining Hartner in 1993 as general manager. He was president of the northern chapter of the Institute of Building.