Slide 1: The Canterbury Rebuild: Opportunities and challenges for Fletcher Building
1 For personal use only The Canterbury Rebuild Opportunities and challenges for Fletcher Building Presentation to analysts Mark Binns Chief Executive, Infrastructure Division July 2011
Slide 2: Fletcher EQR
2 Fletcher EQR For personal use only • Appointed in October 2010 to act as agent for EQC • Project management role • Brief covers residential repair claims: between $10,000 and $100,000 plus gst • Geographical scope: Christchurch, Selwyn, Waimakariri, Hurunui, Ashburton and Timaru • Remuneration: pr
Slide 3: Organisational Structure
3 Organisational Structure For personal use only Contract with FCC EQC Engineering General Manager South Pacific Building Division Division Fletcher EQR Division Fletcher EQR Central Office Hub Hub Hub x 18 • Hub Manager • Supervisors • Quantity Surveyors • Community Liaison • Administration Contrac
Slide 4: Quantum and Timing
4 Quantum and Timing For personal use only • Project Size o Not yet quantified but best estimate currently approximately $NZ 2.5B o Caution needs to be applied in placing reliance on estimates • Project Programme o A number of factors will determine programme – Average size of each job – After shock
Slide 5: Stakeholder Relationships
5 Stakeholder Relationships For personal use only EQC Claimant EQC EQR Accredited 765 Accredited Hub Contractors contractors as at 22 July 2011 Note: Contractor EQC Claimant Accredited Merchants works with his building merchant of choice July 2011
Slide 6: Materials Supply
6 Materials Supply For personal use only • Materials comprise est. 35-50% of total value o Effects of multiple events still to be determined • No favoured position for Fletcher Building subsidiaries o Supply is fully contestable o Contractors maintain their own links to supply base July 2011
Slide 7: Going Forward
7 Going Forward For personal use only • Competition for skilled labour once all construction sectors commence • Accommodation • Inflationary pressure • Start / stop implications of after shocks July 2011
Slide 8: Current Status
8 Current Status For personal use only Scorecard – to Friday 22 July Hubs established 18 (consistent with original planning) 1 more in process of establishment Contracting firms 765 accredited – well ahead of plan People 5,900+ contractors, trades people and others inducted Emergency repairs Over 20
Slide 9: Fletcher EQR: Time for questions
9 Fletcher EQR For personal use only Time for questions July 2011
Slide 10: Infrastructure Alliance
10 Infrastructure Alliance For personal use only • To be established between Fletcher Construction, CityCare, MacDow, Fulton Hogan and Downer, with each having a 20% share. • Christchurch City Council and CERA are also full participants in the Alliance • The estimated value is between $2b and $3b wi
Slide 11: Infrastructure Alliance
11 Infrastructure Alliance For personal use only The Alliance concept emerged after the 22 Feb 11 earthquake when stakeholders wanted a procurement model for the infrastructure rebuild that: • is faster; • delivers better value for money; • manages standards and resources across the city; and • prov
Slide 12: Infrastructure Alliance: Scope
12 Infrastructure Alliance For personal use only Scope • Over 200km roads to rebuild • Over 800km of pipes to rebuild • Manholes and pumping stations • Bridges, retaining walls, river banks • Curbs, footpaths and berms • Traffic islands, traffic lights, barriers and lightstands • Parks, reserves and
Slide 13: Infrastructure: Other opportunities in Engineering
13 Infrastructure For personal use only Other opportunities in Engineering • Port of Lyttelton - >$300m • Re-levelling buildings & houses • Piling new buildings • Ground remediation – liquefaction; stone columns • Other councils – Selwyn, Waimakariri Including: July 2011
Slide 14: Infrastructure Alliance: Time for questions
14 Infrastructure Alliance For personal use only Time for questions July 2011
Slide 15: Commercial Building: First phase: Demolition
15 Commercial Building For personal use only • First phase: Demolition Grand Chancellor is the first of many hundreds, perhaps even 1000 demolitions • Construction phase to follow resolution of: o Geotechnical issues o Resolution of new Code o Planning input, debate and resolution o Insurance claims
Slide 16: Commercial Building: CBD and Suburbs
16 Commercial Building For personal use only CBD and Suburbs • Outside CBD o Progress less constrained • Overall commercial rebuild expected to have a longer tail than other sectors July 2011
Slide 17: Commercial Building: Time for questions
17 Commercial Building For personal use only Time for questions July 2011