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Respect! What makes this Chinese-led construction project worth a New Zealand Government delegation's visit? Read on to find out

If you work in property investment or construction, you will no doubt have heard plenty last year about pandemic-related construction delays — delays that continue even today. According to a Stats NZ survey, residential projects in the second quarter of 2020 took an average of almost 7 weeks longer to complete.

Yet the project we are looking at today went through two lockdowns and still finished ahead of schedule and within budget. It was delivered to such a standard that Kāinga Ora and Kiwibuild have repeatedly shared it as a case study. Even the New Zealand Government's lead development agency sent a delegation all the way from Wellington to visit. What makes this even more heartening is that the project was delivered by a construction company whose team is predominantly Chinese — a real source of pride!

What is this project? And what makes its team so impressive? Read on...

 

“Connection” is more than just words

This outstanding project in South Auckland is Kōtuitui Place. An urban development in the heart of Manukau, Kōtuitui Place provides more than a hundred affordable homes across multiple stages, offering a variety of townhouse and apartment layouts. Some homes are part of KiwiBuild, while others are available on the open market. 

Kōtuitui's development has received strong support from Kāinga Ora and local iwi Te Ākitai Waiohua. In fact, the latter gifted the project its name, Kōtuitui, meaning “Interlink (connection)”, reflecting local people's hopes that the completed project will bring connection and development.

Determined to live up to that trust, the developer, with years of senior management experience at Fletcher and other leading development companies, Avant Property was equally meticulous in selecting its team. The project design came from acclaimed architect Ken Crosson, whose work has taken him from Auckland to the world. Building consent was handled by leading New Zealand design firm Assemble Architects , structural engineering by Brown & Thomson, and quantity surveying by the experienced team at Kingstons. The outstanding construction management team appointed to build it was Chancellor Construction。

The project comprises two stages. The first covered almost 5000 square metres, with 8 blocks and 61 homes, and took just 200 days to deliver。

“Construction began a week before the first lockdown. Delivering early and to a high standard was the result of efforts by everyone involved,” main contractor Chancellor Construction's Commercial Project Director Vonni Zhang said, “By the time we removed the scaffolding, the developer had already obtained the property titles. Once the interior fit-out was complete, the council, developer and designer carried out their inspections in parallel. Settlement followed immediately after the Code Compliance Certificate (CCC) was approved. Everyone worked together to ensure project funds were used efficiently.

From this account, it is clear that everyone involved in managing construction at Kōtuitui Place put into practice the idea of “connection” through their actions. This closely coordinated collaboration not only helped the developer make every dollar count despite the pandemic, but also gave the government and local iwi greater confidence in future related developments. This is why Kōtuitui Place has become a textbook example. In 2021, its first stage also won a residential category Gold Award at the New Zealand Commercial Project Awards.

 

 

Plan carefully, then act

Delivering “On-Time, On-Budget” during a pandemic places high demands on a main contractor. Beyond working well with everyone involved, what other lessons can be drawn?

Commercial Project Director Vonni Zhang said: “Before lockdown ended, the government issued construction guidelines for the different alert levels. When work resumed, we responded quickly and implemented them strictly, leading and supervising subcontractors on registration, protective measures and social distancing. Even today, we still follow Level 3 requirements. They are demanding, but they provide a healthy, safe workplace for our workers and partners, and help construction run more smoothly and efficiently.

For construction, our planning always starts while the project is still on paper, so we rarely encounter difficulties during the build. In the three months before work begins, we review the drawings together and make a substantial effort to prevent problems. “We simplify difficult aspects of construction wherever possible. Where that is not possible, we plan the construction sequence in advance,” Vonni Zhang added.

“When it comes to materials, we always ensure they arrive on site before the labour does. That would not be possible without our suppliers' support and developers' trust,” Vonni said. 

“First, we coordinate everything and procure early, ensuring materials with longer lead times arrive when needed, which avoids stockpiling. Second, we discuss supply availability with suppliers every week. This has also become a habit for them, so they warn us in advance if something will be out of stock.

“Many developers also place considerable trust in us, bringing us in at the pre-consenting and documentation stages — what is known as ECI (Early Contractor Involvement). We suggest replacing materials that are difficult to source, cumbersome to install or poor value for money, minimising factors that could delay construction and cause losses for those involved.

“For example, the original design for Kōtuitui's first stage specified sheet metal for the upper levels, but few workers had the skills to install it. So we took the initiative and recommended that the developer switch to James Hardie materials.”

 

 

Understanding needs to maximise value

Clients are willing to consider Chancellor Construction's suggestions not only because of their longstanding working relationship, but also because the team understands clients' needs and those of everyone involved, and can propose solutions that maximise the project's value。

Vonni said, “We know that all townhouse developers want building materials with low maintenance costs. Initially, the client was unfamiliar with James Hardie's fibre cement products. Because they require painting, the client mistakenly assumed maintenance costs would be high. 

“The client ultimately accepted the alternative not simply because our construction team was more familiar with James Hardie products, but because we understood their needs. Through ongoing communication and guidance, case studies and site visits, we showed them the appearance of Linea Oblique cladding and helped them understand its stability, low maintenance costs, and resistance to fire, corrosion and moisture damage. This solution also helped them achieve their project profit.

 

“James Hardie's after-sales and technical teams also provided substantial support to the developer, designers and construction team. Their training enabled even inexperienced workers to quickly learn the installation process, helping us move construction forward.”

Kotuitui's second stage, also being built by Chancellor Construction, is currently under way and expected to be delivered by the end of this year.

Chancellor Construction is an accomplished team of 12 people, most of whom are Chinese. Commercial Project Director Vonni Zhang said, “We are proud to be a Chinese team. Through our industry knowledge, work on government projects and determination to deliver every project well, we also hope to make the Chinese community proud in the mainstream market.” Chancellor Construction ranked fifth nationally in the 2019 Deloitte/BNZ Fast 50 competition. It also received a business award from AUT, Auckland University of Technology, in 2017, and the Employer of the Year award at the Westpac Business Awards in 2016. This year, it was nominated and successfully assessed to become a national finalist in New Zealand's EY Entrepreneur Of The Year awards. 

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