About the project
Hopper Developments, a client of Kaizon, is a privately-owned land development company based in Orewa. They are best known for their expertise in creating comprehensively planned coastal lifestyle developments. Cabra Developments is a long established privately owned company based in Rodney, North Auckland and have over 30 years experience. David Barr, Construction Manager Hopper Developments, approached Kaizon for Quantity Surveying services on stage one of a new luxury retirement home being built on Station Road, Huapai, Auckland.
Country Club Huapai is currently under construction to become a superior retirement home for those over 60 years of age. The Retirement Home project is a joint venture between Hopper Developments Ltd and Cabra Developments Ltd. The project is expected to be completed by mid 2020, and is valued at approximately $33m for each of the three stages of the project. The high-end aged care development will involve the construction of 40 buildings over 57,000m2. The development will total 325 accommodation units
David Barr engaged Gus Fepuleai, Director of Quantity Surveying at Kaizon, to discuss the project and the services Kaizon would provide to Hopper Developments. The partnership began and services were outlined between the two parties.
Project budget estimate:
Kaizon began services by providing an overall estimate budget for the project, this took approximately 1.5 weeks to complete. Gus lead this phase and presented an accurate and well-articulated project budget which included detailed cost calculating and took into account any assumptions that needed to be made. In Kaizon’s experience the most important aspect of providing an estimate is to have a sound understanding of the entire construction process, as you need to know what monetary value to allow for and what assumptions need to be made. Providing an estimate can be difficult in the early design stages as you don’t have a lot of information to work with. Technical knowledge plays a big part in the success of a budget and helps towards making accurate calculated assumptions.
Partial schedule of quantities:
The next phase was to prepare a partial schedule of quantities. Kaizon did a full measure of the drawings so they could later compare once the development began. Any variances in the drawings compared to what is built would need to be rectified. This is something Kaizon will be monitoring and leading throughout the project.
Kaizon were heavily involved in the tender negotiation process and guided Hopper Developments through the details to ensure they reached the desired outcome. The key aspects Kaizon influenced was to ensure there were no hidden costs that would be a surprise to David and the team down the track, and to ensure the appropriate quantity and types of materials were being included in the tender – at the right price. Kaizon has a deep understanding and extensive expertise with regards to pricing up building projects and in tender negotiations, this was reflected in the outcome of the tender negotiation process where the advice given to Hopper Developments was timely, appropriate and overall saved Hopper Developments a lot of time and money. Kaizon is known to be meticulous and add a lot of value in ensuring the tender is fair for all the parties involved. David Barr said, “requesting Kaizon’s services to be heavily involved with the tender negotiations really helped the whole process for us. They ensured we were getting exactly what was expected and that no hidden costs would surface down the track. The fact that the team at Kaizon have experience working as both client side and contractor side was really useful. They were able to advise us and help us with decision making. Kaizon saved us a lot of time and money by being involved with the tender negotiations.”
Scope of project and drafting of the construction contract:
The next phase of the project that Kaizon provided services for was clarifying the scope of the project and then assisting in drafting the construction contract. With any large development it is essential that all contractors and parties involved thoroughly understand the scope of the project and what is expected. If contractors and the owner are not on the same page then this can result in a failed project with delays and cost overruns.
Kaizon has experience working with many different contractors and stakeholders within a building project and knows how to bring them all together to ensure everyone is working towards the same goal.
Kaizon met with lawyers and other relevant parties to ensure the right clauses were included in the contract. This is an important part of the process as having the right clauses is essential to managing the process through and ensuring the project doesn’t result in legal proceedings due to some clauses being overlooked. Based on previous experience the team at Kaizon knew which clauses to include in the contract and were able to provide sound advisory services to Hopper Developments.
Kaizon were then involved in the value engineering process to further reduce the overall project cost. This involved evaluating construction materials and products, then researching alternative options which could reduce cost and get the client better value for money. Some examples of materials Kaizon evaluated are soffit claddings, glulam beams, columns fixings and louvre system alternatives. David Barr commented, “Gus and the team have been invaluable with the value engineering process. They have assisted with the recommendation of materials that are both high-quality, yet more cost effective.”
The project is still ongoing and Kaizon are now in the construction monitoring phase of the project. This includes evaluating and monitoring monthly progress, taking progress photos, negotiating variations – which includes additional costs, unforeseen situations etc. For example, once the construction company started the foundation work they realised they needed additional piling max depth due to unforeseen soil conditions.
Gus said, “the project has been all go from the start. It’s been a great project to be involved with, I love being able to use our expertise and experience to support Hopper Developments to achieve their goals for the project. Exceeding our client’s expectations is a core value at Kaizon and I’m glad we’re doing that for this project.”
David and the team at Hopper Developments were pleased with the contract negotiations and the clauses that were recommended to be added. They were pleased with how Kaizon ensured there was always a senior member involved in the project, and the quick responses that were given to contractor queries. Perhaps the most valuable service that Kaizon provided was the fact that the team at Kaizon have experience working as both client side and contractor side. This allowed Gus and the team to give knowledgeable and sound advice to David, and provide direction and clarity to certain aspects of the project. David continued to say, “Gus and the team have been invaluable to this project by providing advice and imparting their knowledge to us. They have given this project 110% effort. Their responses are always timely and their advice is always trustworthy and accurate. I would highly recommend Kaizon to oversee any project to ensure timing and costs are tracking well and are fair.”
The project is still on-going and is making good progress. Kaizon will update this case study once the project is complete and will add project completion photos.