Our $2.4 billion construction partnership with Fulton Hogan and Fletcher Construction


Today, Watercare Chief Executive Raveen Jaduram confirmed our commitment to a $2.4 billion construction partnership with Fulton Hogan and Fletcher Construction for the delivery of water and wastewater infrastructure for Auckland over the next ten years.

The long-term and collaborative nature of the contract is a first for New Zealand. Chief Infrastructure Officer Steve Webster says the company is seeking to address many of the challenges faced by the construction industry, while also achieving our ambitious sustainability, cost-efficiency and safety targets. “Our company is about delivering water and wastewater services to a growing Auckland. To do this, we must continue upgrading and expanding our network of pipes, pump stations and treatment plants.

“Historically, we’ve done this on a project-by-project basis. This has been working well from our perspective but it doesn’t help the infrastructure industry, which finds it hard to invest in people, plant and equipment when it has no long-term security or forward works programme.

Importantly, our model will support the development of a high performing construction sector in New Zealand. It enhances the resilience of our partners, who will have long-term agreements with us – they will be able to invest in people and we will allocate risk in a fair way. We will have a mature and collaborative way of working to ensure our customers, company and partners are looked after.”

Earlier this year, we set ourself ambitious targets to:
  • reduce carbon in infrastructure by 40 per cent by 2024
  • reduce the cost to deliver our infrastructure programme by 20 per cent by 2024
  • improving the health, safety and well-being of all people involved in delivering our infrastructure by 20 per cent year on year.

Webster says we cannot achieve our targets if we continue to deliver projects in traditional ways. “We will work collaboratively with Fulton Hogan and Fletcher Construction to plan and deliver a programme of work – rather than discrete projects – in order to drive greater cost-efficiency and innovation. We’re calling this way of working the Enterprise Model.”

Fulton Hogan New Zealand Chief Executive Officer Graeme Johnson welcomes this approach. “This way of working will transform the way we deliver water infrastructure. We see the Enterprise Model as a great opportunity to increase the productivity and capabilities of everyone involved, and a model that enables us to provide our people with job security and to grow and develop talent – it’s a win-win for everyone involved. We also see potential to take our learnings from this model to beyond the water sector, and are looking forward to innovating and finding ways to meet these targets,” says Johnson.

Fletcher Construction Chief Executive Peter Reidy says today’s announcement champions collaboration and will benefit Aucklanders and generations to come. “This is a transformational model of partnership built around carbon reduction, safety improvements and cost savings that challenged our team to collaborate across their specialty areas. “Watercare has changed the way it partners and that has stimulated Fletcher Construction to respond in a way that puts safety, sustainability and innovation at the core of our model.

“This new decade-long contract builds on the successful relationship we have with Watercare through our work on multiple current projects including the Northern Interceptor and treatment plants in Clevedon, Mangere, Ardmore and the Waikato.” Peter Reidy says.

Watercare’s current design partners BECA, Stantec and GHD will continue to work alongside new construction partner’s Fulton Hogan and Fletcher Construction in this new way of programme delivery.