QS QUOTE LTD

13/10/2026

NZ CONSTRUCTION INDUSTRY – ARE WE FINALLY SEEING A RECOVERY?

Positive signs are emerging for New Zealand's construction industry, but are we seeing a genuine recovery or simply more projects being planned?

THE NUMBERS LOOK PROMISING

According to the media, tender platforms, political reporting and Stats (NZ), the value of new projects entering the planning stages increased significantly compared with the previous quarter:

- Overall construction pipeline: +32%
- Building projects: +24%
- Civil and infrastructure: +47%
- Residential developments: +105%
- Office developments: +226%

Overall, the pipeline is 84% higher than the same period a year ago.

REGIONAL PERFORMANCE

- Upper North Island: +179%
- Lower North Island: -47%
- South Island: -54%

Auckland and the Upper North Island are clearly leading, but the recovery remains uneven.

HOUSING ACTIVITY IMPROVING

Stats NZ reports 40,581 new homes consented in the year ending June 2026, an increase of 19% year-on-year.

THE REALITY CHECK

More projects in the pipeline do not necessarily mean more construction work on site.

Projects still require funding, approvals and commercially viable budgets before construction can begin.

OUR VIEW AT QS QUOTE LIMITED

These figures are encouraging, but builders and subcontractors cannot survive on proposed projects alone.

The industry needs:
- Funded and approved projects.
- Realistic construction budgets.
- Fair contracts and reliable payments.
- Accurate estimating and effective project management.

The opportunities are emerging. The real test is how quickly they translate into actual construction work.

Are you seeing more enquiries, tenders and confirmed projects in your area?

QS QUOTE LIMITED
Quantity Surveying | Estimating | Cost Planning | Project Management

23/09/2026

Ever wonder why petrol prices are so high in New Zealand?

It’s not just about where the oil comes from; it's tied to global markets and the exchange rate between the New Zealand and US dollars.

A major factor people often overlook is just how much goes to the government. Around 46.5 percent of the price you pay at the pump is tax, including fuel excise duty for road funding, carbon costs under the Emissions Trading Scheme, and GST.

When prices jump, like the recent move from $2.30 to $3.30 (unleaded 91)per litre, that means significantly more revenue for the government, reaching roughly 1.31 billion dollars in additional tax annually.

20/09/2026

FROM SITE PHOTOS TO VERIFIED PROGRESS: HOW 360° CAMERAS AND AI ARE CHANGING CONSTRUCTION

The construction industry is reaching a turning point in how project progress is recorded and verified.

Traditional reporting often relies on periodic site walks, contractor updates and hundreds of disconnected photographs. This can leave room for inconsistency and make payment claims or variation disputes more difficult when reliable, contemporaneous evidence is limited.

A new approach combines 360-degree cameras with artificial intelligence.

During routine site walks, authorised team members can use cameras attached to purpose-designed hard-hat mounts to capture a systematic visual record of the project. The footage can then be uploaded to a secure cloud platform, organised by date and location, and reviewed without creating a significant additional reporting burden.

Depending on the system and project setup, AI can assist with identifying materials, services and structural elements. The captured conditions may also be compared with the construction programme, drawings or BIM model to support assessments of work completed across different trades and zones.

The potential benefits extend well beyond progress reporting:

• A consistent, time-stamped visual history of the project
• Better evidence to support progress claims
• Earlier identification of incomplete or non-compliant work
• Improved records of services before they are concealed
• Faster identification of possible design deviations
• Stronger evidence for potential variations and disputes

Importantly, this technology does not replace site inspections, professional judgement, quantity surveying or proper contract administration. A system may identify additional work, but a qualified person must still determine whether it constitutes a valid contractual variation and assess its value.

Its real value lies in strengthening the evidence available to the project team.

Instead of relying mainly on memory, isolated photographs or subjective estimates, progress assessments can be supported by an organised, location-based and date-stamped visual record.

That could lead to more transparent valuations, earlier discussions, fewer surprises and better protection for everyone involved.

The question is no longer whether this technology will influence construction reporting—it is how quickly the industry can adopt it responsibly and use it effectively.

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...