QS QUOTE LTD

19/08/2026

NEW ZEALAND CONTRACTORS — WE WANT TO HEAR FROM YOU.

QS QUOTE LIMITED is researching the recurring issues that cost New Zealand contractors time, money and unnecessary stress on building projects.

Please vote for the issue that causes you the greatest frustration. If your main concern is not included in the poll, please add it in the comments.

We want to better understand the problems contractors face and investigate practical ways to improve project pricing, communication, payment processes, contract administration and overall project delivery.

Question:
What causes NZ contractors the most frustration on building projects? (Select your top 3 and post it in the comments section)

Options:
1. Rising costs and shrinking margins
2. Council consenting, inspection and CCC delays
3. Late payments, retentions and cash-flow pressure
4. Variations completed without timely approval or payment
5. Scope and design changes durinG
6. Insufficient or uncertain forward work
7. Unrealistic tender prices and construction programmes
8. Poor communication and slow decision-making
9. Onerous contracts and unfair risk transfer
10. H&S and compliance administration

This poll is open to main contractors, builders, subcontractors and other construction professionals throughout New Zealand.

Please vote, comment and share it with others in the industry.

18/08/2026

ARE NZ BUILDING PROJECTS OVER-INSURED?

Consider a $10 million apartment project involving around 30 consultants and 60 subcontractors.

A typical insurance structure could include:
• One contract works policy of about $11 million. This covers the full project value plus an allowance for price increases and variations.
• $10 million public liability cover for the developer and main contractor.
• $5 million professional indemnity insurance for the architect and key engineers.
• $1 million to $2 million professional indemnity cover for smaller consultants.
• $10 million public liability cover for high-risk trades such as excavation, piling, structural work, roofing, waterproofing, plumbing, electrical, fire systems and lifts.
• $5 million public liability cover for general finishing trades.
• $2 million public liability cover for low-risk suppliers and service providers.

Take a tiler as an example. A tiler may be required to carry $5 million public liability insurance, even if the tiling contract is much smaller.

This may appear excessive, but the insurance is not only protecting the value of the tiling work. A waterproofing failure could cause serious water damage to several apartments and cost millions of dollars to repair.

If the tiler also designs, installs or certifies waterproofing, $10 million public liability and $2 million professional indemnity cover may be reasonable.

However, the tiler should not normally need a separate $10 million contract works or “all risks” policy if already covered under the main project policy.

When all the insurance certificates are added together, the total could exceed $400 million. But this does not mean that a $10 million building is insured for $400 million.

The policies cover different risks:
• Contract works insurance covers accidental physical damage to the project.
• Public liability covers damage or injury caused to other people or their property.
• Professional indemnity covers losses caused by negligent design or professional advice.

Many of these policies also cover the contractor or consultant’s entire business, not only this project. No one can claim more than the actual proven loss.

If a claim occurs, the relevant insurer investigates it. The claim is paid subject to the policy’s excess, exclusions and limits. The amount available under that particular policy may reduce, but the other unrelated insurance policies normally remain in place.

Banks, developers and main contractors can require insurance through their loan agreements and construction contracts.

However, a Code Compliance Certificate confirms that the building work complies with the consent. It is not an insurance certificate.

As at August 2026, New Zealand does not have a general law requiring every person on a building project to carry these exact insurance limits.

The real concern is not the total value of all the insurance certificates. The concern is unnecessary duplication, the same limit being forced onto every trade, important exclusions being overlooked, and professional indemnity cover ending before defects appear.

Insurance should be based on the possible damage a party could cause, not simply the value of their contract or the amount requested on a standard form.

17/08/2026

AI IN THE QS/ESTIMATOR’S OFFICE: TOOL, THREAT OR TEAM MEMBER?

Artificial intelligence is rapidly changing the way Quantity Surveyors and Estimators work. Used correctly, AI can improve productivity, reduce repetitive administration and allow professionals to spend more time applying commercial judgement.

The advantages are significant:

• Faster review of drawings, specifications and tender documents
• Quicker preparation of scopes, reports and tender comparisons
• Assistance with checking calculations, omissions and inconsistencies
• Improved document formatting and client communication
• Better organisation of project information and historical cost data
• Reduced time spent on repetitive administrative work

And, of course, one major advantage:

“AI doesn’t argue with the Boss, it simply follows instructions… even when the Boss changes those instructions five minutes later!”

However, AI also has limitations:

• It can provide incorrect or outdated information with complete confidence
• It may misunderstand drawings, contractual wording or project-specific conditions
• It cannot replace an experienced QS’s commercial judgement
• Poor instructions will usually produce poor results
• Confidential project information must be handled carefully
• Every quantity, rate, assumption and conclusion still requires professional verification

AI does not understand a construction project in the same way an experienced QS does. It has not attended the site meeting, negotiated with the subcontractor, inspected the existing structure or explained a difficult valuation to the client.

The best approach is therefore not “AI versus the Quantity Surveyor.” It is the Quantity Surveyor using AI as a capable assistant.

AI can complete the first draft, analyse information and identify possible issues, but accountability must remain with the professional. The final measurement, rate, recommendation and commercial decision still require human review.

The future QS office will not necessarily employ fewer professionals. It will employ professionals who can produce better work, more efficiently, by combining technology with experience.

AI may not replace the Quantity Surveyor, but a Quantity Surveyor who knows how to use AI may have a considerable advantage over one who does not.

05/08/2026

HIRING A QUANTITY SURVEYOR INTERN IN NEW ZEALAND: WHAT EMPLOYERS NEED TO KNOW

Internships can be an excellent way to develop the next generation of Quantity Surveyors. However, calling someone an “intern” does not remove an employer’s legal responsibilities.

If an intern undertakes take-offs, prepares estimates, checks progress claims, obtains supplier prices, updates reports or performs other productive work that benefits the business, they will generally be an employee and must be paid.

From 1 April 2026, the adult minimum wage is $23.95 per hour. The lower starting-out or training wage does not apply simply because someone is a student, graduate or receiving workplace training.

A paid QS internship should include:

• A signed written employment agreement before work begins.
• A genuine fixed-term reason and clearly stated end date.
• PAYE, KiwiSaver and ACC obligations.
• Annual holiday pay and applicable public-holiday and leave rights.
• Accurate wage, hours and leave records.
• Paid rest breaks and unpaid meal breaks.
• Proper office and construction-site health and safety arrangements.

For a genuine fixed-term internship of less than 12 months, annual holiday pay may generally be paid at 8% of gross earnings, provided this is agreed in writing, paid on top of wages and shown separately.

An unpaid placement is lawful only in narrow circumstances. The person must not expect payment, the business should receive no economic benefit, the work must not replace ordinary employee duties, and the placement should be short and limited. Job-shadowing and observation may qualify; producing work used on live or billable projects generally will not.

University course credit does not automatically make productive work unpaid.

For a QS practice, the intern should have a named supervisor. All estimates, valuations, payment schedules and client reports should be reviewed and approved by an experienced QS. Confidentiality, intellectual property, professional-indemnity cover and site-safety requirements should also be addressed.

If the intern is not a New Zealand citizen or resident, verify their work rights before they start. Eligible student visas may allow up to 25 hours per week, but the individual visa conditions always apply.

The bottom line is simple: if your business benefits from the intern’s work, pay them and employ them properly. A well-structured paid internship protects the employer, supports the intern and strengthens the QS profession.

Information current at 6 August 2026.

04/08/2026

WHAT JULY’S CONSTRUCTION PIPELINE IS TELLING US

The July 2026 construction activity report shows just over 2,000 published projects, comprising approximately 1,500 new projects and 500 updates.

From a quantity surveying perspective, the project-stage distribution is the most important signal:

• 1,613 projects at design and documentation
• 205 at pre-construction
• 190 under construction
• Only a small balance at concept stage

This means roughly four out of every five reported projects are still in design and documentation. That is encouraging for the forward pipeline, but pipeline must not be confused with secured construction revenue. At this stage, projects may still change scope, lose funding, be delayed or not proceed.

Residential work dominates the report by a substantial margin. Infrastructure is the next strongest category, while education, retail, office and industrial projects provide a broader but smaller spread of opportunities. Reported activity is almost entirely New Zealand-based.

From a QS point of view, four priorities stand out:

1. Start cost management early. Robust cost plans and regular design-to-budget reviews can prevent expensive redesign and value-engineering exercises later.

2. Assess quality, not just quantity. Contractors should consider client funding, documentation quality, programme, procurement method, margin and the likelihood of winning the work.

3. Price risk properly. Scope gaps, incomplete details, escalation, long-lead items, provisional sums and programme risk must be identified before tender.

4. Protect cash flow and capacity. A busy pipeline can encourage overcommitment. Realistic resourcing, disciplined procurement and sound commercial controls remain essential.

The overall message is positive: there is a healthy volume of work moving through New Zealand’s pre-construction pipeline. However, opportunity becomes real value only when projects are properly funded, accurately scoped, competitively procured and commercially controlled.

Important context: the figures measure reported project activity. They do not show total construction value, awarded contracts, cancellations or profitability. The information should therefore be treated as a pipeline indicator rather than a complete measure of market health.

23/07/2026

CUMULATIVE VALUATIONS 101

Cumulative valuations are the foundation of accurate construction p...

15/07/2026

CONSTRUCTION PROGRESS CLAIMS ARE NOT ORDINARY ACCOUNTING.

A common misconception in construction finance is to treat a progress claim as though it were merely an invoice generated by an accounting system.

IT IS NOT.

Accounting records amounts invoiced, received, paid and allocated. A construction progress claim assesses the value of work completed, materials supplied, approved variations, retention, contractual entitlements, previous payments and the remaining balance at a specific valuation date.

The distinction is fundamental.

Progress claims are normally prepared on a "cumulative valuation basis". Each claim reassesses the total value of work completed from the start of the project, rather than valuing only the latest month.

The amount payable is broadly calculated as:

"Total cumulative value to date, less amounts previously certified or paid."

If an item was overvalued, undervalued, incorrectly included or omitted in an earlier claim, it is corrected in the latest cumulative assessment. The revised value then flows automatically into the current amount payable.

If accounting were treated in the same way as some bank reviewers treat progress claims, a company correcting an item in its current financial year would be expected to return to the date it was registered and redo every set of annual financial statements from that date onward. That would be impractical, unnecessary and contrary to the purpose of current-period reporting.

Unfortunately, some employees and reviewers within major banks apply this thinking to progress claims. They attempt to reopen every previous claim rather than recognising that the latest cumulative valuation already reconciles earlier overclaims, underclaims, omissions and corrections.

This misunderstanding creates significant risks, including double-counting work, rejecting valid adjustments, duplicating deductions, confusing cash paid with value completed, delaying payments and distorting the true cost-to-complete position.

For example, if a contractor previously overclaimed against one trade, the next cumulative valuation reduces the total assessed value of that trade. The current payment calculation then corrects the earlier position automatically. There is no need to reverse and reissue every previous claim as though correcting an accounting ledger.

Proper records remain essential. Each valuation should be supported by site inspections, measurements, photographs, relevant invoices, approved variations and a clear audit trail.

However, the purpose of a progress claim is to determine the **current contractual value of work completed**, not to recreate the project’s entire payment history every month.

Accounting records the movement of money.

A progress valuation determines what the completed work is worth.

Failing to understand that difference can result in incorrect payment schedules, unnecessary disputes and serious disruption to construction cash flow.

Project Management, Estimating and Quantity Surveying

11/07/2026

NZ CONSTRUCTION PIPELINE: STRONG REBOUND
*** BUT NOT YET A FULL RECOVERY ***

The Hubexo New Zealand Pipeline Report for Q2 2026 shows a major rebound in the value of projects entering the concept and design stages. New early-stage work reached approximately $12.6 billion, up 247% from Q1 2026 and 46% from the same quarter last year.

Building projects increased to approximately $8.0 billion, representing quarterly growth of 169%, while civil projects rose to approximately $4.6 billion, a 612% quarterly increase. Much of the civil growth is linked to renewable-energy infrastructure, including major wind farm and energy park developments.

The largest projects driving the headline figures include:
• A proposed $3.0 billion fertiliser facility near Invercargill
• The $1.5 billion Hokonui Wind Farm
• The $970 million Waimauku West development

The South Island recorded the strongest regional growth, increasing 514% quarter on quarter to approximately $6.0 billion. The Lower North Island increased 634% to around $2.0 billion, while the Upper North Island rose 93% to approximately $4.6 billion.

However, these figures require careful interpretation. They represent early-stage pipeline projects, not confirmed construction starts, and the total value is heavily influenced by several exceptionally large developments.

Residential work improved by 90% from the previous quarter but remained 44% below Q2 2025. Retail and hospitality also declined by 26% quarter on quarter.

The wider economy is showing tentative improvement, with GDP increasing 0.8% for the quarter and 1.5% annually, while inflation eased to 3.1%. Building consent activity was 11.3% higher than a year earlier but declined 6% from the previous quarter.

QS QUOTE LIMITED’s view is that the pipeline is encouraging, particularly for civil, energy, industrial and large-scale development. However, genuine recovery depends on these projects securing funding, progressing through design and consenting, and converting into tenders, contracts and actual site activity.

Contractors must remain disciplined regarding cash flow, tender margins, procurement risk and project selection.

Source: Hubexo New Zealand Pipeline Report — Q2 2026.

06/07/2026

WHEN HEALTH AND SAFETY BECOMES A COSTLY OBSTRUCTION TO COMMON SENSE

Health and Safety in construction is supposed to protect people. That should never be questioned. No one wants unsafe sites, injured workers, or avoidable accidents.

But in New Zealand’s construction industry, Health and Safety has too often become something else entirely.

It has become a system of paperwork, box-ticking, duplicated inductions, generic templates, online portals, compliance uploads, and administrative roadblocks that often do very little to make the actual work safer.

The original purpose was simple: identify the risk, control the risk, and make sure people go home safely.

Now, too often, the process has become more important than the outcome.

Small contractors and subcontractors are being buried under layers of compliance before they can even pick up a tool. A straightforward task can be delayed because a form has not been uploaded, an induction has expired, a portal is not working, or someone in an office needs another version of the same document already provided somewhere else.

This is not always safety. Sometimes it is bureaucracy dressed up as safety.

And it is costing the industry dearly.

It costs time.
It costs money.
It delays programs.
It frustrates competent tradespeople.
It pushes small businesses further under pressure.
And worst of all, it can distract from the real hazards on site.

A worker does not become safer because he has clicked through another generic online induction. A subcontractor does not become more competent because he has submitted a 40-page template no one will properly read. A site does not become safer because the paperwork folder is full while obvious risks remain uncontrolled.

Real Health and Safety happens on site, not just in a computer system.

If there is an open edge, protect it.
If access is unsafe, fix it.
If a machine is dangerous, stop using it.
If someone does not understand the task, explain it properly.
If the site is messy, clean it up.
If something looks wrong, stop and deal with it.

That is common sense. That is practical safety.

The construction industry does not need less safety. It needs smarter safety.

We need to stop confusing paperwork with protection. We need to stop punishing small contractors with unnecessary administration. We need to stop creating systems that satisfy office compliance while adding very little value to the worker on the ground.

Health and Safety should support construction, not strangle it.

The focus must return to practical controls, competent supervision, clear communication, and real risk management. Not endless forms. Not duplicated systems. Not compliance for the sake of compliance.

Because when Health and Safety becomes bigger than the risk itself, it stops being protection and starts becoming another burden on an already overloaded industry.

"COMMON SENSE SHOULD NOT BE TREATED AS OUTDATED.

IT SHOULD BE THE FOUNDATION."

09/04/2026

THE "YES" vs. "NO" CHALLENGE

Navigating the construction industry requires more than just a tool belt and a blueprint; it requires the delicate art of the "strategic no." Whether you're a project manager, a contractor, or a specialist, the pressure to be a "yes" person is constant. We want to please the client, hit the deadline, and keep the momentum going.
However, in our line of work, saying "yes" to the wrong thing can be more damaging than a flat-out refusal.

The Trap of "Yes"
We’ve all been there. A client asks for a "quick" change mid-build, or a subbie asks to take a shortcut to stay on schedule. In the moment, "yes" feels like progress. It avoids conflict and keeps the vibes positive. But in construction, an unearned "yes" often leads to:
• Scope Creep: Small favours that balloon into unpaid labour.
• Safety Compromises: Skipping a step that could lead to a site hazard.
• Compliance Headaches: Agreeing to a material or method that won't pass a final inspection or meet council standards.

The Power of a Professional "No"
Saying "no" isn’t about being difficult; it’s about being a professional. A well-timed "no" protects the integrity of the project. It means you value quality, safety, and the long-term warranty of the build over a short-term fix.
When you say "no" to an unrealistic deadline or a substandard material, you are actually saying "yes" to:
• Structural Integrity: Ensuring the building stands the test of time.
• Client Trust: Clients may not like "no" today, but they’ll hate a failure five years from now.
• Profitability: Keeping the project within the margins that keep your business healthy.

Finding the Balance
The goal is to be a Solution-Oriented Realist. You don’t have to be a brick wall, but you do have to be a gatekeeper.

The Golden Rule:
Never say "no" without offering a "how."

Instead of saying, "No, we can't do that," try: "We can't do it that way because it won't meet compliance, but here is an alternative that achieves the same result safely."

At the end of the day, our reputation isn't built on how many times we said "yes", it's built on the quality of the finished product. Stay firm on the standards, be flexible on the path, and always keep the build's best interest at heart.