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Audio, Radio New Zealand

There's good news of sorts on the building-inspection front in Auckland. After nearly seven days of fanning out across the city inspecting damaged buildings - the biggest such deployment of building inspectors since the Christchurch earthquake emergency - the operation will be scaled back this weekend.  There are currently around 95 inspectors in the field who have checked 3,500 buildings. As of 6pm last night 190 buildings were red stickered, and a further 790 yellow stickered. The most red stickered areas are Mount Albert/Mt Eden with 54 and the North Shore with 32. Auckland Council general manager building consents Ian McCormick spoke to Corin Dann. 

Research papers, University of Canterbury Library

Principal contractors can achieve better financial performance in civil construction projects by increasing the proportion of works delivered by subcontractors. However, anecdotally the use of subcontractors is thought to be make principal contractors less competitive due to compounding profit margins. This study found that projects with a higher proportion of subcontracted work exhibit better financial results than projects with less work delivered by subcontractors. This study uses the Christchurch Infrastructure Alliance (known as the Stronger Christchurch Infrastructure Rebuild Team, SCIRT) as a case study to observe why principal contracting firms engage subcontractors and the effect subcontracting has on the overall performance of a construction project. Five top tier civil contracting firms (known as ‘delivery teams’) participated in the alliance. Each team was responsible for the delivery of individual projects. A sample of 334 individual SCIRT projects were analysed, and key delivery team staff were surveyed, to investigate the effect subcontractor engagement has on performance. Between the five delivery teams there were clear differences in how much work was delivered via subcontracts. The extent of this subcontractor engagement had a significant effect on the relative performance of the principal contractor. A positive correlation between subcontractor engagement and overall financial performance is observed, and a negative correlation is observed between subcontractor engagement and non-financial performance. Although the causes of these relationships appear complex, the primary reason appears to be that subcontracting fosters increased productivity by cascading financial performance incentives closer to the physical construction task. To maximise competitiveness and financial performance, principal contractors must embrace the use of subcontractors and develop efficient systems of managing subcontracted work.