This story was prepared by Southbase Group and is being published by the New Zealand Herald as advertorial.
It’s been reported that New Zealand currently ranks in the bottom 10% of high-income countries for the quality and efficiency of our infrastructure investments.
Southbase Group COO Will Birch says, “The vertical construction sector has been experiencing three major issues for some time – affordability, productivity, and accountability; all of which can be solved by embracing innovation, emerging technologies, and modern procurement methods.”
Procuring major construction contracts under a managing contractor model through a Pre-Construction Services Agreement and/or a Two Stage Design and Construct contract allows the contractor the ability to work with the client collaboratively to develop and deliver projects that achieve the brief and project feasibility.
“This ensures accountability clearly sits with the contractor managing risk throughout the entire project and its procurement lifecycle,” says Birch.
Other key benefits of a contractor-led procurement model include delivering value for money and an expedited design and construction programme. By utilising as-built project data, standardised design principles, and construction technology such as BIM (Building Information Modelling), the sector can cut waste, reduce timeframes, and be far more efficient.
“Imagine the efficiency gains if you were to apply these principles across key sectors such as health, education, corrections and housing where there is commonality in areas, rooms and building typologies. This, linked with a consistent pipeline would allow our sector to operate at scale with improved efficiency, driving procurement and supply chain benefits that would have positive implications for all major projects and go a long way towards solving the infrastructure deficit across New Zealand,” says Birch.
About Southbase Group
Southbase Group is a fully integrated construction company with over 200 industry professionals across New Zealand. With a clear vision to transform the construction sector for good, Southbase Group continues to advocate for positive change across the vertical construction sector.
Southbase Group achieved the No 4 position in New Zealand in The BCI Construction League Report with 10 projects worth $510m started in 2023 and $980m of project value under construction.
Southbase Group’s managing contractor model
‘The Southbase Way’ managing contractor model illustrates how risk mitigation and cost certainty can be successfully managed from a best-for-project perspective. If adopted more widely, it would significantly improve current construction sector performance and the wider issues of low productivity and lack of innovation. This is a model that Southbase Group has adapted and successfully applied on several major projects to date.
To learn more about the Southbase way or to discuss your next project contact:
Will Birch, COO: will.birch@southbase.co.nz
North Island business, Marcus Beddis: marcus.beddis@southbase.co.nz
South Island business, Adam Nash: Adam.Nash@southbase.co.nz