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This project. The Grove, in Papakura, Auckland I took over development management/ project direction and a month later also project management (to improve builder to client communication) for 36 houses under construction and about 60 sites under civils and initial design/feasibility for a further 50 sites/homes to replace a temporary stormwater pond whilst council finished an adjacent wetland/stormwater management area.

One builder this time, steel frame. That eventually seemed to work ok. However, a build contract that was ineffectual so everything became a negotiation.

Strategic anecdotes:

When house sales dried up at the prices required, using a project marketing approach I took a micro approach. Individual homes were given to aggressive local agents, one per agent, each one staged and marketed in their own way and dissapated the staleness of the original campaign. That eventually worked.

Stage two, instead of preselling homes and land, we presold land only to smaller builders. At that market there was a little bit of positive arbitrage compared to hiring a main contractor and building ourselves. The resource consent was an integrated one so all the homes were designed to match the overall aesthetic of the development. What we supplied was the land with titles, with reserve contributions sorted and almost ready to lodge building consent plans- using timber construction to maximise the number of potential buyers. Ready to lodge – so they took on all the risk on the accuracy of the plans but could also adjust to suit their details and techniques. They all sold at good prices.

Learnings:
When I took over the project the conditions required to satisfy 224c was quite onerous but some sections had already been sold with sunsets. And the two no longer matched. I reckon I needed another six months!

The race was on and there was neighbors infrastructure agreement reneged on, a pumpstation to create, thrusting a water main half a mile down the road, getting agreement from parks on top of all the usual conditions. Lets just say Veolia got sick of me turning up to their offices!

The heat was on. I still can’t believe it but we got 224c a week before the sunsets expired. Why is this important? Because since purchasing the sections the housing market had declined…..

I have a system for dealing with obtaining 224c, mainly its coordination and persistence and a load of structure – but that is for a different day.

As a former CEO of Universal Homes, building hundreds of homes including walk up apartments over the last seven years, I have come to an enlightening conclusion with regards to that what Shane Brealey has achieved with Simplicity Living. The design, method of procurement, construction, tradie interaction and project management with a constant focus on improvement -aka kaizen Toyota- canNOT be replicated by any existing construction firm in New Zealand.

And that means no other firm can secure the substantial cost savings he does in providing mid-level apartment buildings to the build to rent market, or the for-sale market for that matter. I know this for a fact, I sure tried.

I have poured over every detail in his plans, from layout efficiencies to construction junctions. I understand the way he procures and manages the projects. I used experts to reverse engineer every element. I have seen the feasibilities (that’s ridiculous I USED to say) and I have seen what he can pay for land.

My conclusion is simple, easily explained by these four constraints that affect everyone else:

Firstly, the only way to replicate what Shane is done is to first throw everything you currently do in the bin. Every preconception about how people work together and inherent bias, founded on generations of an industry that doesn’t really change anything, but constantly tries using new methods whilst still embedding old attitudes. That gets rid of 90% of the players – because they won’t or more than likely structurally can’t do that.

Second, you need to start again with one person making every single decision. That person needs to understand the complete development ecosystem from tenant needs & management to funding, urban design, architecture, project management to site management and even to the resource and process every subbie performs on site, as well (phew) to the logistics and perhaps even manufacture of every component involved in the final build. Of course, this initial micromanagement actually results in complete hands-off delegation once the decisions are ingrained. Many decisions already made never have to be made again because…

Thirdly, consistency. Every project builds on the previous project. Every project moves forward substantially similar to the one before with subtle improvements. Improvements created -no doubt- by a team in synergy, getting that extra 1% here and there. There are no other ‘different’ projects clouding the production line (from CEO to plumber). Rather than changing everything all the time, improvement is incremental, step by step. And that is greatly helped because of….

Fourth, continuity. You need the team to continue the journey without delay, without downtime, with a pipeline that allows every player to work together (yes subbies advising other subbies!) to get faster/more productive/more quality conscious, because they (everyone!) know they will make more money the next time around from their own productivity increases.

So, unless you are ready to start again, have one key person run the entire show and then get 700 units under your belt doing the same thing every day, what Simplicity Living through Shane and his devout followers has achieved is next to impossible.

Not trying to kiss butt, just saying it as I see it. Could I be wrong?

Andrew Crosby

https://simplicity.kiwi/learn/updates/simplicity-living-oranga?gad_source=1&gclid=EAIaIQobChMIpdqdqLnchQMVuxJ7Bx3FkwD3EAAYASAAEgJApPD_BwE

Xpect Connect. Auckland City Tender Prequalification Results. After running through the results the terrace home developer will be issuing tenders to 3 of the parties prequalified using Xpect Connect.

Testimonial attached.

http://aenspire.com/xpect/xpectconnectReference.pdf

Xpect 2 Connect has gone INTERNATIONAL! We have partnered with one of New Zealand’s leading Immigration Specialists to provide an end-to-end recruitment and immigration service for Property, Development, Project Management, Engineering and Construction firms in New Zealand.

If you are a New Zealand employer and you require skilled english speaking experienced industry professionals you can now tap into our combined applicant database. If an existing applicant matches your requirements, we will also handle all the visa requirements.

Make no mistake there are highly qualified applicants overseas that would cherish the opportunity to live and work in New Zealand. Often for very competitive and compelling salaries with higher than anticipated levels of experience. Costs are typically paid by the applicant, not the employer.

Contact andrew@xpectproperty.com with your job placement requirements.

Overseas (non New Zealand resident) skilled candidates are also welcome to register.

TENDER OPPORTUNITY FOR MEDIUM SIZED MAIN CONTRACTORS IN AUCKLAND!
Attention Main Contractors in Auckland Xpect Connect is calling for expressions of interest to prequalify for this new build opportunity. Ten Terrace homes in Auckland City (the old council boundaries) starting September 2024.

The project has obtained Building Consent, Engineering Plan Approval and has funding to proceed. The developer with experience in these types of projects has decided to build and hold the product so no presales are required. Please note the public SW work been completed and is not part of this contract.

The developer and their representative has been prequalified by Xpect Connect.

Main contractors register your interest by emailing andrew@xpectproperty.com prior to 5pm Wednesday 13 March.

I will contact you to go through prequalification process. If you prequalify as suitable, and at the developers sole discretion, tenders will be issued by the developers representative direct and due 16 April.