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.