Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.
View this topic in a long page with up to 500 replies per page Create new topic
1 | 2 
1716 posts

Uber Geek
+1 received by user: 563

Trusted
Subscriber

  Reply # 1957017 14-Feb-2018 12:38
Send private message

I'm in the middle of delivering one of their problem projects as a sub contractor and it'd not a surprise in any way. This project has had at least 3 project teams go through it and is over a year late.

 

FCC used to be the best builder in the country to work for - they pushed you very hard but they were supportive in a way that most builders are not. In the last 4-5 years they have gone rapidly down hill. Huge numbers of very high quality staff have left due to the way they have bid and delivered projects. It's very sad.


1969 posts

Uber Geek
+1 received by user: 757

Subscriber

  Reply # 1957039 14-Feb-2018 13:12
Send private message

nickb800:

 

trig42:

 

I don't own shares (other than through Kiwisaver), but it, and last weeks US stock market 'correction' have caused a hit in my Kiwisaver funds.

 

Not any cause for panic, swings and roundabouts.

 

As for Fletcher Building - I hear from people I know in the industry (and related) that they bid for these jobs very aggressively, and for many, way under what the true costs are or will be (when you add in contingencies). Almost like they are bidding on these big jobs as 'loss leaders'. It has bitten them big time now.

 

 

Yes underbidding here to pick up follow on work at better rates is pretty common in construction. 

 

 

I think that doesn't apply to the Christchurch Justice Precinct project nor the Sky City Convention Centre project - they were the be-all and end-all in themselves.

 

 


13984 posts

Uber Geek
+1 received by user: 1763


  Reply # 1957049 14-Feb-2018 13:20
2 people support this post
Send private message

IMO there needs to be an inquiry and regulation into the whole building sector in NZ, and why we pay substantially more for materials than other countries. A case in point, I got a quote for some building materials late last year from a building supplies company/ wholesaler. I went to order them recently only to find that they had gone up about 30 percent since the quote, and we are talking 10s of thousands here in additional costs in just a few month. As there are only a few players in this material, they all appear to have put up their prices by similar amounts. They also put up their prices by a similar amount at the beginning of last year. Apparently their is so much demand for it due to the building boom, that raising prices reduces demand as people will look at alternative options. IMO that just isn't on.


1716 posts

Uber Geek
+1 received by user: 563

Trusted
Subscriber

  Reply # 1957053 14-Feb-2018 13:29
One person supports this post
Send private message

kryptonjohn:

 

I think that doesn't apply to the Christchurch Justice Precinct project nor the Sky City Convention Centre project - they were the be-all and end-all in themselves.

 

 

There has been a fundamental shift in client behavior in large construction projects. Historically the client would engage a design team, they would tender on the design and then changes would be variation chargeable. What is happening now is that the client will engage a design team to take the project through to say 50% developed design. They will tender on this on the basis that the main contractor will then take over the design risk and complete the project on a design and construct, fixed lump sum or guaranteed maximum price (GMP) basis. They can't then claim for design elements that are missed as they are resonsible for them.

 

Buildings are also now much more complex than they used to be. I work in the technology side of the building industry and the jobs have become far more complex with much higher integration requirements.

 

With main contractors working on very very small margins (2-5% are typical for a large project) if they get the scope break up, design risk or contractor selections wrong, the risk is very high. 


4360 posts

Uber Geek
+1 received by user: 1731


  Reply # 1957096 14-Feb-2018 14:35
Send private message

You'd be pissed if you were a firm who were underbid by Fletcher's.





Mike

1969 posts

Uber Geek
+1 received by user: 757

Subscriber

  Reply # 1957101 14-Feb-2018 14:41
Send private message

Yep.

 

Or alternatively, you'd be overjoyed at dodging a bullet!

 

 


6406 posts

Uber Geek
+1 received by user: 3229


  Reply # 1958113 14-Feb-2018 15:58
Send private message

networkn:

 

Not sure I'd agree. It's possible, but Fletchers do have some great people.

 

 

If they do, then I don't know where they keep them.  

 

From what I've seen they have high turnover of possibly well (academically) qualified but inexperienced PMs on sites, few of whom could organise a p1ss-up in a brewery.  Add to this a lot of people in offices, making job-site rules - but having no idea at all of the consequences of enforcing things like an absolute ladder ban etc.

 

 


1 | 2 
View this topic in a long page with up to 500 replies per page Create new topic

Twitter »

Follow us to receive Twitter updates when new discussions are posted in our forums:



Follow us to receive Twitter updates when news items and blogs are posted in our frontpage:



Follow us to receive Twitter updates when tech item prices are listed in our price comparison site:





News »

N4L helping TAKA Trust bridge the digital divide for Lower Hutt students
Posted 18-Jun-2018 13:08


Winners Announced for 2018 CIO Awards
Posted 18-Jun-2018 13:03


Logitech Rally sets new standard for USB-connected video conference cameras
Posted 18-Jun-2018 09:27


Russell Stanners steps down as Vodafone NZ CEO
Posted 12-Jun-2018 09:13


Intergen recognised as 2018 Microsoft Country Partner of the Year for New Zealand
Posted 12-Jun-2018 08:00


Finalists Announced For Microsoft NZ Partner Awards
Posted 6-Jun-2018 15:12


Vocus Group and Vodafone announce joint venture to accelerate fibre innovation
Posted 5-Jun-2018 10:52


Kogan.com to launch Kogan Mobile in New Zealand
Posted 4-Jun-2018 14:34


Enable doubles fibre broadband speeds for its most popular wholesale service in Christchurch
Posted 2-Jun-2018 20:07


All or Nothing: New Zealand All Blacks arrives on Amazon Prime Video
Posted 2-Jun-2018 16:21


Innovation Grant, High Tech Awards and new USA office for Kiwi tech company SwipedOn
Posted 1-Jun-2018 20:54


Commerce Commission warns Apple for misleading consumers about their rights
Posted 30-May-2018 13:15


IBM leads Call for Code to use cloud, data, AI, blockchain for natural disaster relief
Posted 25-May-2018 14:12


New FUJIFILM X-T100 aims to do better job than smartphones
Posted 24-May-2018 20:17


Stuff takes 100% ownership of Stuff Fibre
Posted 24-May-2018 19:41



Geekzone Live »

Try automatic live updates from Geekzone directly in your browser, without refreshing the page, with Geekzone Live now.



Are you subscribed to our RSS feed? You can download the latest headlines and summaries from our stories directly to your computer or smartphone by using a feed reader.

Alternatively, you can receive a daily email with Geekzone updates.