13 CONSTRUCTION - Prendos New Zealand Limited · Development in Auckland is becoming less economic,...

3 PROPERTY UPDATE The latest on Auckland's market

7 ABERCROMBIE MEWS Design to build in record time

11 A UNIQUE SKILLSET Meet chartered structural

engineer Andrew Crowley

FEATURINGCONSTRUCTION PARTNERSHIPSWhy collaboration is key to success.

13

Issue 05, June 2019

ISSUE 5 2019

1 GETTING THE RIGHT PEOPLE ON BOARD

We hear from Prendos CEO Fiona Gavriel

3 PROPERTY STILL THE SAFEST INVESTMENT

Gordon Edginton talks the Auckland property market

5 WELCOMING BEN WHITEHOUSE

Market driven approach key for new Wellington manager

7 FROM CONCEPT TO BUILD IN RECORD TIME

How Howick’s new boutique townhouse development moved so quickly

9 INTELLIGENT SOLUTIONS THROUGH DIVERSITY

The diverse Prendos Christchurch Team meets market needs

10 A BUILDING SURVEYOR ON COST MANAGEMENT

Why you can’t afford not to have a quantity surveyor on your next project

11 BRINGING A UNIQUE SKILLSET TO NEW ZEALAND

We welcome chartered structural and safety engineer Andrew Crowley

12 CONSTRUCTION PARTNERSHIPS

The importance of quality and collaboration over price

Issue 05, June 2019

CONSTRUCTION PARTNERSHIPSWhy collaboration is key to success.

3 PROPERTY UPDATE The latest on Auckland's market

7 ABERCROMBIE MEWS Design to build in record time

11 A UNIQUE SKILLSET Meet chartered structural

engineer Andrew Crowley

FEATURING13

We work in partnership with our clients to understand their requirements and pull together a tailored package that both meets their needs and adds value to their business."

Welcome to the Autumn 2019 edition of Property Informed. We’re really excited to share some of the things that are going on here at Prendos, as well as take a look at what’s happening in the market.

As a business, Prendos is continuing to grow to meet the changing needs of our clients and potential clients. For us, it’s all about market-driven growth and building long term relationships. As a consultancy, we work in partnership with our clients to understand their requirements and then pull together a tailored package that both meets their needs and adds value to their business.

To do this, we’re continuing to bring the right people on board from New Zealand and around the world. And, if we don’t have the required skills in-house, we work with one of our many long-standing partners to provide what’s needed.

One of the latest additions to the Prendos team is our new Wellington Manager, Ben Whitehouse, who joins us from the UK and brings a great deal of consultancy and management experience to the role. You can find out more about Ben and his strategy of market-driven growth on page 5. Another exciting addition is Chartered Structural Engineer, Andrew Crowley. Andrew not only has extensive commercial engineering experience in the design and construction industry, but most recently provided security and engineering advice to clients in the UK, looking at topics such as explosives and counter terrorism measures. Andrew is featured on page 11.

One of our real growth focuses at the moment is developing our regional offices in the Bay of Plenty, Wellington and Whangarei, as well as maintaining our strong presence in Christchurch. We’re really pleased to have Chartered and Registered Quantity Surveyor Linda Lodetti on board in the Bay of Plenty, as she brings a huge amount of cost management experience to the table for our clients in that region.

Quantity surveying, or cost management, is something we’re looking at in this edition of Property Informed. It’s a very necessary but sometimes overlooked service, and on page 10 Prendos Director Rory Crosbie talks about how important it is to engage a cost manager in the early stages of a project. In fact, early engagement is a theme that really applies to everything we do here at Prendos. Your property is one of your biggest assets, and a little investment up front can ensure it’s protected into the future, rather than waiting until you have a really big job on your hands.

On a final note, I’d like to acknowledge one of our long-standing Directors, Mark Williams, who has resigned after 17 years with the company. Mark has been part of Prendos’ growth over the past two decades and will be missed as a leader in our business. We wish Mark well in his next endeavours.

Thanks, and as always please get in touch if you feel we can add value to your next property venture.

Fiona GavrielCEO

GETTING THE RIGHT PEOPLE ON BOARD

PROPERTY INFORMED | June 2019 21 Prendos New Zealand Limited | 0800 773 636 | e. [email protected]

Prendos Registered Valuer Gordon Edginton shares his thoughts on the outlook for Auckland’s stalling property market.

The Reserve Bank’s recent OCR cut from 1.75% to 1.5% has inevitably flowed on to lower mortgage rates, which should result in a small boost to the flagging property market. And, with a further drop to 1.25% expected later this year, a low interest rate environment seems well and truly cemented. While this is good news for borrowers, Gordon says it’s not so favourable for those with money in simple investments like bank term deposits and bonds.

“Low interest rates will see investors continue to chase better returns in housing and commercial property. Property returns (rental yield and capital gain) far outstrip those from bank deposits. A Capital Gains Tax is no longer on the political agenda and the bright line test hasn’t been extended as many thought would happen – so any gain is tax free if held for over five years. The uncertainty that was weighing on investment decisions is gone, which means Real Estate will continue to be the number one choice of investment.”

But don’t expect any rush to buy from investors just yet. Affordability constraints and cautious bank lending practices are limiting the ability of many would-be investors or first home buyers. With Auckland price growth currently stalled and values starting to soften, buyers remain wary and reluctant to commit. Testament to this, Gordon says, is the fact that Auckland’s monthly

sales volumes remain very low – around 1,750 per month – and days to sell have extended to beyond 40.

“Auckland’s median price has sat at around $850,000 for the last two years and there’s no sign of an upturn approaching. In reality, prices are weakening a little – particularly in the lower cost areas of South and West Auckland.”

In these regions, the recent boom in construction and subdivision activity has meant a considerable lift in new housing and vacant sites available. Developers are being forced to offer very competitive pricing to achieve a sale, with section prices in some of the new greenfield subdivisions dropping by as much as 10-15% since 2017.

The impact of strong migration

The Reserve Bank and most economic commentators have forecasted slowing population growth for some time, but it’s yet to materialise. In contrast to the Government’s goal of fewer migrants, permanent and long-term (PLT) net immigration has risen again this year – now at 64,000 net PLT arrivals, close to mid 2016 peaks. If these gains persist we’ll see stronger domestic demand, population growth and more pressure on housing.

“The ongoing tightness in the labour market means continued demand for skilled immigrant workers,” Gordon says. “Without some more serious Government intervention and with our economy still tracking in a positive direction, with GDP of 2% plus, I see migration inflows remaining high and sitting well above their long term average.”

So what does this mean for the mid-term economic outlook? Gordon says sustained housing demand is looking good.

“Migration-led population growth accounts for around two thirds of national GDP growth, and past housing price booms have coincided with large immigration numbers. An extra 300,000 people have joined our economy over the past few years, so it’s no surprise we’ve seen growth in the housing market.

“That said, it’s perplexing that the property market is not currently ‘on fire’ given these conditions. This could be because of tight bank lending practices, Government policy changes or new regulations making buyers very wary; as well as the foreign buyer ban – which has supressed demand from non-residents. This is being felt in the CBD apartment market as well as the luxury end of the market where foreign buyers were helping to underpin demand.”

Property speculation and ‘flipping’ has all but disappeared in the last two years too, thanks largely to the five

year bright line test on investment property.

“In effect, it’s a de facto capital gains tax for shorter term gains and has helped curtail speculative demand. The property cycle was already in a slowdown phase, but the five year extension certainly helped stop the trend of buying and on-selling quickly for profit.”

Development in Auckland is becoming less economic, thanks to high land prices, increased building costs, tight availability of finance and the excessively long and slow consenting process. On top of that, the potential risk of the end product’s price being lower than predicted has eroded profits and put many projects on ice.

“Tough bank lending criteria and the requirement for a high level of presales or large capital injection

has made raising finance for projects difficult. The re-emergence of second tier lenders is helping fill this gap, but their finance costs are onerous. Builders and developers are hesitant to commit to new projects when their expectations of selling are low and buyers are worrying about falling prices. Banks, too, will have lower expectations of presales and therefore more reluctance to lend.”

On the bright side for developers, the Auckland Unitary Plan has ‘up-zoned’ large areas for more intensive development. Conventional suburban sites that were previously subdivided

into just two lots are now seeing terraced housing of six or more units.

Overall, Gordon sees the current market state as positive, and believes the Reserve Bank’s LVR restrictions and OCR cuts are having the required effect.

“Auckland’s market moves in cycles – moderately predictable to around a ten year ebb and flow, but with varying length to the up and downward phases. The last peak was late 2016 and, following introduction of the LVR restrictions with a 40% deposit requirement for investors, the market has stalled. However all other influences on the market remain positive – falling interest rates; high inward migration; low unemployment; and a sound economy with stable growth.

“The LVR restrictions coupled with

tighter bank lending criteria can only be seen as a resounding success in curbing market activity and stopping rapid price escalation. The most recent property boom had lasted for four and a half years so a correction was well overdue.

“I’m predicting more of the same for the next two years, then another rise in line with the America’s Cup. But don’t expect the next upward cycle to be as strong as the last, as high prices and affordability issues will keep a lid on any large surge.”

The LVR restrictions coupled with tighter bank lending criteria can only be seen as a resounding success in curbing market activity and stopping rapid price escalation.

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“I can already see so much opportunity here. I love the country and the people. One of the things I found in the UK is that it was often about whom you knew and where you studied. I’m relieved to say it doesn’t seem to be like that here – business appears to be very much built on relationships. That suits me. I’m someone who sees what needs to be done and just gets on with it. I thrive in an environment where you can work with people and get to know them, and that is clearly important here.”

Ben is particularly excited about the caliber of his team in Wellington.

“I’ve worked with a lot of people over the years, and I have to say these are some of the best I’ve seen – they’re incredibly technically competent. We’ve got a great foundation to build from, so the next step is to recruit more of the right people with the skillset to meet market requirements.”

It’s this market driven approach that Ben believes is key. He’s currently in the process of talking to existing and potential clients to assess what they’re looking for, and says he’ll

then build a team that can meet market needs and make the most of the opportunities on offer.

“For me, it’s about focusing on what customers want. Whether you’re a small outlet or a really big business, you have to understand the local market. It’s also important to have that rapport or relationship with those you’re working with – to be heading towards a common goal. I like a fast paced commercial environment but I also like to be part of a team and know that I’m on the journey with them, making a difference.”

Ben says this team approach should extend to the contractor-consultant relationship, where a really collaborative mindset is required to achieve the best possible outcome for the client.

“One of the things I’ve found here is that contractor-consultant relationships can seem a bit adversarial. In the private sector, particularly, there’s a need to create a more cooperative environment where people can work together to come up with a client focused, collaborative solution.”

Ben says Prendos, as a full service consultancy, is in a great position to offer a tailored, bespoke solution for clients.

“Having worked in an organisation with multiple commercial properties that needed to deliver an income, I think strategic property management is so important. You should be led by the needs of the customer and come up with a high quality, tailor-made solution to fit. Prendos has the capability and vision to do this. First and foremost we do what’s required to make the building safe and help maintain a good quality property, then we look at our clients’ core business and ensure they have the right environment to deliver it – whether it’s teaching, cooking, selling or accommodating people.”

“Prendos is changing and growing to meet the market. Our approach will be collaborative and long term, not just job-by-job. I’m really excited to see where the business is heading and hopefully do my part to shape it too.”

things really took off – in just three years it went from being a company no one had heard of to a huge, blue chip FTSE 100 business. And because it had to grow so quickly, so did I! The business got bigger and more sophisticated and so did my role and my team. The great thing was that it was a really non-egotistical business. It was all about the value you could add – you had to deliver, you couldn’t just talk about it.”

The next decade saw Ben secure his RICS qualification and move between starting his own business, launching a consultancy and setting up a restaurant, before eventually moving back to the Midlands to work in a small building surveying and architectural team. When history repeated itself and the company was acquired by a larger business, Ben ended up running the building surveying function across the country.

“I have to say I love a challenge! I don’t like to sit still. Each role I’ve had has helped me build experience, broaden my skillset and gain confidence in the industry. I like to take a chance, so when Prendos approached me and asked if I’d take the job of Wellington manager, I thought ‘why not?’!

Ben’s career didn’t start in the property industry. He initially trained as a chef and planned to take over the family restaurant business. However, when the business broke up, he was left with some hard decisions to make.

“I was forced to think about where I wanted my career to go. My father-in-law at the time was a talented carpenter and asked me if I’d ever thought about surveying. So that’s what I did – I kept cooking to pay my way through university and got a degree in Building Surveying.”

Ben graduated in 1996 and took a role in the property department of a retail company that had around 700 stores in the UK and many more globally. It wasn’t long before he became manager of the team.

“I had limited experience and a varied educational background, so I think it was my people skills and ability to think commercially that helped me move up the ranks. From there I took a role that involved the development of bars and hotels, which brought both aspects of my training together. When that business was acquired by a larger one in 1999

Hailing from the Midlands, UK, Ben Whitehouse arrived in New Zealand in February this year and took the helm of the Prendos Wellington office. Now, four months on, we catch up with Ben about his past experience and where he sees the company going.

You should be led by the needs of the customer and come up with a high quality, tailor-made solution to fit. Prendos has the capability and vision to do this."

MARKET DRIVEN APPROACHkey for new Prendos Wellington Manager


BCLP Developments Ltd, in conjunction with David Reid Homes, are bringing a high-end terraced townhouse development to the Auckland suburb of Howick. When Director Brett Christie first contacted Respond Architects back in August 2018, he had a section in mind and a hand drawn sketch of the sort of homes he wanted to put on it.

“BCLP’s vision was for boutique, three-storey townhouses that would offer generous, quality living spaces,” says Architect, Joe Lyth. “They wanted a high end, multi-unit residential living development and they needed it to be turned around quickly and within budget.”

Bringing BCLP’s vision to life required a careful balance of smart design and commercial nous. The objective was to deliver a high-end result while ensuring the client’s developmental yield requirements could be met.

With a smart approach to design and a clear understanding of the market, Respond Architects has helped take Abercrombie Mews from site purchase to construction in just seven months.

“The key for us was to draw on our commercial understanding of how to apply great design while still ensuring the client achieved the required profit levels,” says Joe. “This meant understanding what our client’s target buyers were looking for, and how we could deliver this in a way that kept costs down.”

Respond took Brett’s sketch and began working on initial designs, applying

virtual building. By the time you get to the detailed design phase there’s less you need to resolve, as you’ve already had to consider how each part of the design is going to go together. It’s about putting in more work at the start to get a better result at the end. Plus, the accuracy of the BIM model helps generate more accurate quotes from sub-contractors and suppliers – allowing much more certainty around project costs.”

Collaboration is also a key part of Respond’s design philosophy – both with the client and with other consultants and contractors.

“We maintain clear, open communication with the client at all times,” says Joe. “Our approach is to collaborate with them and other design consultants such as planners and engineers, so that we’re working together to deliver the project vision. This means ensuring all parties are well informed and understand what is required of them at each phase of the project.

Respond’s designs have successfully brought BCLP’s vision to life. Abercrombie Mews is the first of its kind in Howick – a boutique development offering spacious, architecturally designed terraced-style homes with double garaging, open-plan living spaces and north-facing decks and courtyards. For BCLP, one of the most useful things has been the ability to see exactly what the finished product will look like, before the ground has even been broken.

“We used the detailed information we’d gathered to create a BIMx model,” explains Joe. “It’s a virtual 3D model of the homes that you can essentially ‘walk through’ in virtual reality using a computer, phone or tablet – much like you would in a video game. It can even be embedded into websites to use as a sales tool. It allows people to get a feel for the spaces, so they can really imagine themselves living there.”

Respond also created material boards, showing the exterior and interior materials and colour schemes, as well as a small physical 3D model that showed where the properties lie in relation to the land contours. Brett says having this level of detail from the outset has been pivotal in the pre-sale of many of the townhouses.

Overall, the project has gone from concept to construction quickly and smoothly.

“Retaining works have begun on site and building will start soon,” says Joe. “It’s been an incredibly quick turnaround, thanks largely to the drive and commitment from BCLP, Respond and the consultant team.

“BCLP has shown that medium density housing is not just for the ‘affordable’, lower end of the market. Smart design thinking can create appealing, well-planned medium density housing to suit a range of buyers’ needs. This is the first of our development projects with BCLP, and we’re looking forward to many more in the future.”

To find out more about Abercrombie Mews, go to www.davidreidhomes.co.nz/blog/new-apartments-for-sale-auckland-howick

From design to build in record time

their knowledge of Auckland’s Unitary Plan to come up with well planned homes that best utilised the available site.

“Auckland’s Unitary Plan has opened up more possibilities in terms of site use, but there are still some restrictions you need to bear in mind. Our experience in this area means we understand how to get the best result within the constraints. For Abercrombie Mews we were able to accommodate four bedrooms in each townhouse, rather than the mix of three and four bedroom homes BCLP had expected. We’ve also included lifts to allow for universal accessibility.”

Respond brought their designs to life using Building Information Modelling (BIM) software. The team’s philosophy is to get accurate information into the digital model at an early stage – applying their strong technical understanding of construction detailing to make sure everything works up front. As Joe says, this prevents issues down the track and reduces issues on site once the build begins.

“Historically, when designing buildings, you’d draw a concept in 2D and add more information as you progressed, with the majority coming in at the detailed design phase when you had to work out how to actually build it! We still sketch, model and develop concepts by hand, but then we translate them with BIM. It allows you to include a lot more detail earlier in a 3D model, so you’re basically constructing a

Smart design thinking can create appealing, well-planned medium density housing to suit a range of buyers’ needs.”––– Joe Lyth, Architect


Professional quantity surveying is the cost management of construction and, as Prendos Director Rory Crosbie says, it’s a discipline that should form an essential part of any project.

Quantity surveyors, or cost managers, work in all sectors of the construction industry worldwide, across all real estate and infrastructure markets. They specialise in managing cost effectively – equating quality and value with individual client needs. As a chartered and registered building surveyor, Rory has been involved in countless construction projects and knows too well what can happen if a hands on cost manager isn’t involved from the very beginning.

“Engaging a professional quantity surveyor at the early stages of a project is a must,” he says. “Construction projects are complex and – particularly for those doing one-off work – the associated cost risks are often only realised in hindsight. Getting a cost manager on board up front can mitigate this issue.

“A good quantity surveyor provides essential input at the start of a project with advice on value engineering and cost management. They specialise in understanding, analysing and reporting on the costs associated with construction projects.”

Rory says clients who don’t engage a cost manager can become too far involved in the design (and, in some cases, the construction) of a project

In Rory’s experience, the best quantity surveyors need to be multi-talented in order to give the client the most relevant strategic cost advice.

“They must be part estimator, part designer, part engineer, part contractor and part mediator. They need to take every issue concerning cost, project schedule and budget into consideration when estimating, planning and reporting cost data. Any smart developer or property owner should ensure a cost manager is part of their project, every time.”

before they realise they need to get professional construction cost advice.

“Unfortunately, some clients get carried away at the start of a project. They’re under time pressure, they have a willing contractor waiting in the wings to get the job done, and they fail to put the required control measures in place to manage the cost, quality and time constraints of their project.”

In fact, there have been a number of occasions where Rory has had to get the Prendos Quantity Surveying team involved in projects that began without the right professionals engaged.

“Parachuting into a large remediation project with few project controls in place can be exciting, but the cost to complete will be greatly impacted by the absence of good cost management. The reality is that it’s something all projects require, to some degree or another.”

Thankfully there are many seasoned players in the New Zealand property industry who have a duty of care to their stakeholders to manage project risk and costs. They understand the value a quantity surveyor can add to the entire process, from planning through to construction and completion.

“A professional quantity surveyor understands all aspects of construction over the entire life of a building or facility. Initially they’re involved at the capital expenditure level, in the feasibility, design and construction phases, but they can also assist with the extension, refurbishment, maintenance and demolition of a facility.”

The Prendos team in Christchurch are a diverse bunch. With 12 staff based in their Burnside offices, they come from all corners of the globe – from Britain, Ireland and Slovenia, to China, the USA and New Zealand. But it’s their diverse skillset that has proven particularly useful to their clients over the years.

“We have a true multi-disciplinary team,” says Prendos Director and Christchurch Manager, Rory Crosbie. “We cover building surveying and cost management, structural engineering and project management. What this means for our clients is that we offer the full package – intelligent solutions for any of their property needs, whether they require just one service or a tailored combination of two or more.

“Our cultural diversity also provides a unique perspective. Our key people have worked in the New Zealand market for almost ten years, so they’re well versed in the local issues and legalities. However they also apply their international experience

The Canterbury region is certainly no stranger to earthquakes. Prendos’ Christchurch-based team has been there through the devastating Canterbury and Kaikoura events, and has put their diverse skills to good use as they work with local communities and businesses to rebuild.

and knowledge where relevant. This collective broader view has resulted in some very positive solutions for our clients.”

In fact, it seems much of the work delivered by the Christchurch team demands specialist skills. Current projects include large earthquake insurance claims following the Kaikoura event, as well as closing out ongoing Canterbury earthquake claims.

“The earthquakes have brought about a great deal of specialist work, all of which demands a particular skillset. Lots of the work we do requires us to act as expert witness, and our knowledge of the legal process, contracts and technical issues, as well as the experience we’ve gained working as a multi disciplined team, gives us a far broader perspective. Our building surveyors, for example, are exposed to our engineers’ conversations on the seismic strengthening of buildings. And our structural engineers now understand how timber decay and passive fire issues can affect a building’s structure.”

On top of this earthquake related expertise, the team work on lease reinstatement and maintenance management work, pre-development surveys and bank finance as well as defective building expert witness and project remediation. While the engineers are busy with structural work, both remediation and new builds, the cost managers keep the rest of the team on their toes when it comes to project costs and risks.

“Working through the aftermath of the earthquake events has been challenging, both personally and professionally,” says Rory. “But it’s also been hugely rewarding. The best part has been assembling and working with the current team and our clients. We really appreciate the relationships we’ve developed, and we’re committed to continuing to deliver for them. We also look forward to building new relationships into the future. Contributing to the rebuild has been a once in a life time opportunity for all of us.”

Cost management specialists New Zealand widePrendos has Chartered Quantity Surveyors based across the country who can look after the costs for your next project.

In Auckland you’ll find Jacques Olivier at the helm, while in Christchurch Sabina Jereb is leading the team. Both bring a high level of knowledge and cost consultancy experience to their roles. The Bay of Plenty office recently welcomed Linda Lodetti, who has over 35 years’ national and international experience in the quantity surveying field.

So, if you’re looking for cost management advice or just want to find out more, give us a call.

0800 773 6367 Auckland (09) 970 7070 BOP (07) 927 0763 Christchurch (03) 940 2760

DELIVERING INTELLIGENT

SOLUTIONS THROUGHDIVERSITY

A BUILDING SURVEYOR’S VIEW OF COST MANAGEMENT


Andrew’s career took him to other parts of the UK where he worked on structural engineering projects for everything from new hotels to private hospitals. He then entered the academic world as a Research Fellow at Leeds University, where he delved into the application of IT in construction and ended up at the forefront of some key developments.

“It was back in 1992 and recession had hit the UK,” Andrew explains. “I took a two year contract at Leeds University looking specifically a project called CIMsteel (Computer Integrated Manufacturing for Constructional Steel work). It was about applying the techniques learnt in the manufacturing sector to the construction sector – such as automation and computer-controlled machinery. At the time, most drawings and calculations were still done by hand. The internet was around but very few people had it – high technology was sending a fax! Lots of software applications were available, but they were stand-alone – so we worked on integration systems that would get them to talk to one another.”

Andrew’s two year contract ended up being a six year stint at the University, and saw him complete a PhD in the Development and Implementation of Product Modelling.

“Product Modelling was the forerunner for the Building Information Modelling (BIM) system we use today. It was about pulling together detailed components and material specifications within an electronic model. I also developed a standard for data exchange – known as the CIMsteel Integration Standards, which was endorsed both in the UK and US.”

Andrew then worked at the Steel Construction Institute for nine years, primarily to develop his CIMsteel Integration Standards. He also promoted a new, more collaborative, way of working between consultants, steel fabricators and contractors, to help them ‘buy into’ and adopt the new technology.

“It was an interesting period. Technology changes so quickly and it’s hard to keep up, but the work I was involved in has given me a real insight into how IT can enable and add value to the industry. What’s

amazing is seeing how the work we did back then has led to some big transformations in construction design, and how it’s progressed into the tools we use every day.”

Andrew also developed a specialism in seismic engineering, thanks largely to a role as Head of Structural Engineering for a division of the Ministry of Defence.

“The MoD had a lot of old building stock that required regular inspection and maintenance. They also had new builds where designs needed to be checked against relevant standards. A large part of this was seismic design, so it’s certainly an area I’m equipped to advise on here in New Zealand.”

Another area where Andrew can add value is Health & Safety design in construction. When he first started out, Health & Safety on construction sites in the UK was virtually non-existent: workers often wore no hard hats, gloves or goggles, and deaths on construction sites were seen as simply ‘part of the job’. Following major incidents (such as the Piper Alpha oil explosion), it was recognised that the attitude and approach to Health & Safety needed to change.

“The Construction Design and Management (CDM) Regulations were introduced to improve the health, safety and welfare of those working in construction. They set up a legal requirement for designers to think about the safety of construction, and we started working on design engineering techniques that could make the workplace safer. My career has given me an inherent safety/security based mentality, which is something I believe could be of use in this country.”

“New Zealand currently has the highest construction death rate in the western world. I think a step change

and one that was sometimes difficult to be part of.

“Somewhat ironically, just before I arrived in New Zealand, the atrocious attack on the Christchurch mosque occurred. It’s something no one expected to happen here, and I think it’s heightened the country’s awareness of potential threats. While I’m here to primarily work on structural engineering projects, I do have security experience that not many in this country would have, which I’m happy to share.”

in safety culture is required, much like what the UK went through. Site Safe NZ is doing a great job but, as in Britain, while the big construction sites are the safest, it’s the little ones that sometimes fly under the radar. Kiwis have a natural tendency to think ‘she’ll be right; it’s only a little job’. This has to change.”

Another challenging role in Andrew’s career was his most recent position, at a company that specialised in security engineering and offered advice to the UK Intelligence Services. Andrew looked at the physical aspect of security engineering, such as Hostile Vehicle Mitigation (HVM) – or trying to stop vehicle bombs entering buildings. More recently, this became about stopping people using vehicles as a weapon, as had tragically happened in Nice in 2016 and on London Bridge in 2017.

“HVM involves looking at possible attack approaches and approach speeds, assessing the threat and coming up with mitigation measures, such as metal balustrades and bollards. The other aspect of my role was Explosive Consequence Analysis, or looking at the potential damage a bomb might cause to buildings and people. It was a very specialist area,

graduate role at Ove Arup & Partners – who were, at the time, the biggest and most prestigious consulting engineers in the world.

“As a keen graduate, this was the programme you wanted to be on, so I was lucky to be selected. It was 1986: London was booming and demand for structural engineers was high. It was the start of the ‘big bang’ – the stock market and financial services sector had been deregulated, and everyone wanted modern commercial office space in London. Most building stock just wasn’t suitable, so there was a lot of knocking down and building new.

“It was an interesting time to be part of so much construction innovation; from the early days of CAD and 3D modelling, composite and ‘fast-track’ construction, to the introduction of ‘air rights’ – or the ability to construct an office block in the ‘air space’ above a railway station or road.

“There were some parts of London that hadn’t been touched since the Second World War – so almost every week, contractors digging foundations would come across unexploded ordnance, undocumented structures, or even plague pits.”

After a lifelong interest in science, engineering and the built environment, it came as no surprise when Andrew began his career in the field of structural engineering. What has been a surprise, however, is where his profession has taken him since then. From IT in construction to health and safety and, more recently, security engineering for the UK Intelligence Services, Andrew has a unique set of skills that he’s looking forward to applying here.

“You could say my career has taken many twists and turns,” Andrew explains. “I’ve been fortunate enough to continue learning throughout my working life – developing new skills and being challenged to stretch myself. It’s always been a pipe dream of mine to work in New Zealand or Australia, so when the opportunity came up at Prendos, I took the chance.”

As a Chartered Structural Engineer, Andrew is already applying his extensive experience to new design/build projects, refurbishment, inspections, appraisals and seismic assessments and strengthening. He’s built up this expertise over a 33 year career, which began with his first

While I’m here to primarily work on structural engineering projects, I do have security experience that not many in this country would have, which I’m happy to share."

With a career path that’s anything but traditional, Dr Andrew Crowley has recently moved from the UK to take up the role of Chartered Structural Engineer at Prendos. We talk to him about how his knowledge might be of use here in New Zealand.


“When was the last time you had to decide between buying the cheaper or the more expensive version of something you needed? If you chose the cheap option, I’m sure it wasn’t long before you wished you’d spent a little more on the one that would perform better or last longer.

Choosing price over quality is something we’ve all done; I certainly know I have. It could be as simple as a screwdriver, or something more significant like a computer or even a car. So, imagine when it’s something as complex, stressful and expensive as selecting a contractor to build or remediate your home, investment or commercial property? Surely this decision would be based on quality?

Unfortunately, that’s not always the case. It’s still all too common for people to select a solution based on price alone.

In the New Zealand construction industry, we often appoint a contractor through a competitive tender process. We believe the best way of determining ‘value for money’ is to ask a range of contractors whether they can deliver our scheme on time, on budget and to the highest standards. Unfortunately, more often than not, the strategy is simply to identify the lowest price. The risk is that you end up with a contractor whose work is of a poor standard, or who is too stretched to have the capacity to do a good job.

Selecting a good main contractor can take time. You want one who has already invested time and energy in selecting their sub contractors, who are skillful and capable of delivering a quality product. You want a team whose values align with your

own; who understand your vision and work hard to deliver it. So how do you do this?

Let’s step back to the early 1990s, when the UK was just emerging from a period of economic downturn that had drastically affected the property and construction market. Many investors, professionals and contractors had exited, and the industry was left on life support – trying to find a new way to operate. Inflation and interest rates were up and investor confidence in construction projects was low. With limited market opportunity, contractors found themselves ‘buying work’ at cost just to keep operating, many were going out of business and cranes sat idly imprisoned by site hoardings.

As a response to the crisis, the UK Government engaged John Egan – the man who took ailing car manufacturer Jaguar from almost certain collapse to success, in a very short period of time, with little or no investment. They asked him to take his experiences at Jaguar and to write a report that might help turn the construction industry around.

Egan had taken Jaguar from a flailing company producing sub-standard motorcars, into a

profitable business that recaptured the essence of what Jaguar started out as: a high quality, status symbol on wheels. He did this by following some key principles, which he wrote about in his subsequent paper ‘Constructing the Team’. It was a document that changed the UK construction industry, with procurement, relationships and client satisfaction all improving as a result. John became Sir John Egan and his name became synonymous with principles such as ‘supply chain management’, ‘partnering’ and ‘constructing a team’.

What was true of the UK construction industry in the 1990’s is reminiscent of the environment we’re currently facing in New Zealand. I believe there are some key lessons to be learned from Egan: working practices and concepts that could be considered, adapted and adopted here.

The spirit of what Jaguar achieved remains central to the partnering concept, and should be at the heart of today’s consultant-supplier-contractor relationship. Instead of working in competition and prioritising price over quality, we need to align to deliver the best product we can for the client – on time, on budget and to a high standard.

It’s about taking a leaf from Egan’s report and starting at the end. Focus on the outcome and how it can be achieved by working collaboratively. And, most importantly, stop thinking about price as the most important factor – because, quite simply, it’s not.”

Start at the end.Simplistically, Egan began by focusing on the end. In his mind, this was producing a quality car that people wanted to be seen in. He believed the market would be prepared to pay more for something that represented quality; and he was right. We need to do the same – focus on delivering a quality outcome and work back to how this can best be achieved.

Supply chain management.By analysing the supply chain and working with them, Egan helped drive down cost of components. It wasn’t just about who could provide the cheapest parts – but working closely with good suppliers to bring costs down. If we do the same, we’ll naturally deliver savings and improve the quality of the end product.

Engage the workforce.Egan developed a well trained workforce who were clear about the objective and took pride in their part of the overall vehicle. Ensuring your workforce understand the vision and are invested in it is a key part of success.

Collaborate.Third party suppliers, sub contractors, specialists and staff were all aligned with the objective of delivering a quality product. By adopting a mindset of ‘one fails, we all fail’, they focused on collaboratively delivering the best possible outcome for their customer.

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The quality is remembered long after the price is forgotten"– Henry Royce, Rolls Royce

Prendos Wellington Manager Ben Whitehouse shares his thoughts on the value of getting contractor relationships right, and how he believes the lessons of iconic car manufacturer, Jaguar, could help.

The importance of quality and collaboration over price.

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