BECOME A MEMBER
Connecting New Zealand

Cost of Stopping report: delaying infrastructure comes with a hefty price tag

04 Jun 2026


Research released today shows New Zealand’s habit of pausing, cancelling and delaying infrastructure projects has cost the country an estimated $11.8 billion over the past 25 years, with taxpayers, communities and businesses paying the price.

The report, The cost of stopping: Assessing the true cost of delaying, deferring and cancelling infrastructure projects, was commissioned by Civil Contractors New Zealand, Infrastructure New Zealand and Water New Zealand. It concludes inconsistent investment pipelines are driving up costs, eroding productivity and delaying critical public benefits.

The report is accompanied by a new interactive “Cost of Stopping” tool to help decision-makers assess the full impacts of pausing or cancelling projects, maintenance and renewals.  

Report author Shamubeel Eaqub said the research challenges the assumption that stopping projects saves money.

“The surprising finding is how expensive pausing or cancelling projects really is. Delays create inflation costs, productivity losses and defer public benefits that compound over time. It’s clear that in many cases, stopping projects can cost more than continuing steadily.”  

Civil Contractors New Zealand’s Alan Pollard says the report highlights underlying structural issues facing the sector. 
“Infrastructure construction delivers public benefit. When looking at delaying or cancelling of projects, we need to be careful we aren’t unnecessarily denying our communities access to these benefits. There is a real cost to this. Stop-start investment damages capability across the entire supply chain,” Pollard says.

The report findings are timely as councils and central government grapple with major infrastructure reform and funding pressures, particularly due to conflict in the Middle East.

“Councils and infrastructure providers are facing significant change and difficult investment decisions. Tools like this help decision-makers understand the real long-term, costs of delays and cancellations, and why a stable, funded pipeline matters,” says Infrastructure New Zealand Chief Executive Nick Leggett.  

The report reinforces that maintaining and renewing infrastructure consistently is far more cost-effective than delaying investment. 
“When essential infrastructure is deferred, communities ultimately pay more through higher future costs, reduced resilience, and delayed benefits,” Water New Zealand Chief Executive Gillian Blythe says.  

The Cost of Stopping Tool enables better analysis of the cost implications of delay or cancellation of horizontal infrastructure projects, including factors such as sunk cost, resumption cost, workforce, cost escalation and deferred public benefit. It can be found online at costofstopping.nz.

The Cost of Stopping report documents how costs can increase through delay, deferral or cancellation, including fuel cost, materials and workforce pressures – factors often amplified when work pipelines become uncertain, such as through change of government.

Report recommendations include ring-fencing maintenance budgets, committing to a funded multi-year infrastructure pipeline, and requiring formal assessment of the full costs before projects are paused or cancelled.

 

 

RELATED




Principal Business Partner
Core Associates
Major Associates
UDC Finance
Habit Health EAP
Iplex Pipelines NZ
Solo
Infrastructure New Zealand
beforeUdig
Over and Out Communications
AECOM New Zealand Limited
Central Group
Ritchie Bros. (NZ) Limited
Remarkable People Ltd
Humes Pipeline Systems
Wirtgen NZ Ltd
Northpine Ltd
Coninnova Limited
Komatsu New Zealand Ltd
ENZED
Geosynthetic Partners International Ltd
First Gas
MIMICO NZ Ltd
New Zealand Transport Agency
Porter Group Limited
MBP (NZ) Ltd
Geofabrics New Zealand Ltd
Firth Certified Concrete
Advice Financial
Liebherr New Zealand
Kobelco New Zealand
AEL
RB Recruitment
Norwood
n3
Youngman Richardson
Greenlight Insurance Brokers
AWF
Fluiconnecto Ryco New Zealand Ltd
Doug the Digger
Rimkus
TR Group
Holcim New Zealand Ltd
Franklin Smith Group
TDX Ltd
Aptella
Reliance Reinforcing Limited
Vertical Horizonz NZ Ltd
Winstone Aggregates
H.J. Asmuss & Co. Ltd
Turners Group Ltd: Head Office/Auckland
Infrastructure Sustainability Council
Terra Cat
The Drug Detection Agency
Marley NZ Ltd
Mico New Zealand Ltd
SAMI Bitumen Technologies Pty Ltd
Westpac NZ Ltd
Enviro NZ Services Ltd
Impac Services Limited
Tech 5 Recruitment Limited
Brandt Tractor Limited
SG Fleet
Nulca NZ
Prime Fluid Management
Aggregates & Quarry Association
Connexis
Hynds Pipe Systems
Commercial Hire NZ Ltd
Trade Me Jobs
Absolute Immigration NZ
Manage Company
Teletrac Navman
Commercial Vehicle Holdings
Plan A
ERoad Ltd
CivilShare
SITECH NZ
BNZ Partners
GHD Limited
RobLawMax Recruitment
Portacom New Zealand Limited
Terra Infrastructure Pty Ltd
AB Equipment Ltd
Bridon Cookes
TotalEnergies NZ Ltd
MATES In Construction
Hydraulink Fluid Connecters Ltd
Global Survey - Auckland
AON New Zealand
OneStaff Limited

Log in





Forgot password?
Create an Account