BECOME A MEMBER
Connecting New Zealand

Arrow’s downfall reflects high risk of construction

28 Feb 2019


The voluntary administration of Arrow International (NZ) announced today will impact not just on the employees of the company and its clients, but the wider network of contractors and subcontractors who supported its construction projects.

Civil Contractors New Zealand Chief Executive Peter Silcock said Arrow’s collapse was yet another demonstration of what is wrong with the construction industry in New Zealand at present, and unless the root causes were dealt with it would continue to be a major issue.

“Once again, this is about attribution of risk. Arrow is one of New Zealand’s top vertical construction companies and it’s a real shame to see a well-respected player exit the market. We need to see a more equitable distribution of risk and a more collaborative approach.”

Times when there was a lot of work on could be extremely difficult for construction companies, who manage complex networks of subcontractors and suppliers, he said.

“We need a more mature relationship between clients and contractors. Part of the issue is clients repeatedly going for lowest price but wanting a gold-plated outcome. That’s fuelling incessant litigation when the budget just won’t stretch to cover costs.”

With fewer players in the industry to take on the current workload this was likely to exacerbate the issue.

Arrow Construction’s announcement of voluntary administration today followed the collapse of other major construction companies, including Ebert Construction in August 2018 and Corbel Construction in December.

Mr Silcock said despite improved protection of retentions for sub-contractors, it was “extremely disappointing” that many who had been involved in Ebert’s work were still out of pocket, with disused cranes still standing next to abandoned work sites.

AN EBERT CONSTRUCTION BUILDING SITE IN THORNDON UNOCCUPIED SINCE THE COMPANY COLLAPSED IN AUGUST 2018

 

 

RELATED


Principal Business Partner
Core Associates
Major Associates
Vertu Equipment Limited
Doug the Digger
TotalEnergies NZ Ltd
Global Survey - Auckland
Mimico NZ Ltd
beforeUdig
n3
Southeys Group Auckland
Terra Cat
CSP Div of Fletcher Steel
Coninnova Limited
Reliance Reinforcing Limited
TR Group
The Drug Detection Agency
Synergy Positioning Systems
Humes Pipeline Systems
SAMI Bitumen Technologies New Zealand Ltd
Liebherr New Zealand
Portacom New Zealand Limited
Porter Group Limited
Winstone Aggregates
Power Farming New Zealand Ltd
Hynds Pipe Systems
First Gas
Brandt Equipment
Infrastructure Sustainability Council
Holcim New Zealand Ltd
Brolube New Zealand
Commercial Hire NZ Ltd
Blick
AECOM New Zealand Limited
Assetinsure
Turners Group Ltd: Head Office/Auckland
Terra Infrastructure Pty Ltd
H.J. Asmuss & Co. Ltd
Solo
Connexis | Te Pukenga
Geosynthetic Partners International Ltd
Teletrac Navman
Capital Consulting International NZ Limited
ENZED
Steelgal NZ Ltd
Mico New Zealand Ltd
Absolute Immigration NZ
Milwaukee Tool New Zealand
A B Equipment Ltd
Kobelco New Zealand
Assignar
Parallaxx
AWF
Wirtgen NZ Ltd
Komatsu New Zealand Ltd
Youngman Richardson
Marley NZ Ltd
Enviro NZ Services Ltd
Advice Financial
Manage Company
RobLawMax Recruitment
Waka Kotahi NZ Transport Agency
Franklin Smith Group
TVH NEW ZEALAND
Sheet Pile Ltd
SITECH NZ
Nulca NZ
Greenlight Insurance Brokers
Northpine Ltd
CivilShare
Vertical Horizonz NZ Ltd
TLC Insurance Limited
XCMG New Zealand
TRIG Instruments
MATES In Construction
Hydraulink Fluid Connecters Ltd
ERoad Ltd
Rettenmaier New Zealand Ltd
Firth Certified Concrete
Geofabrics New Zealand Ltd
TDX Ltd
Infrastructure New Zealand
John Deere Limited
BNZ Partners
UDC Finance

Login





Forgot password?
Create an Account