New Zealand’s construction firms of all sizes are facing relentless cost escalation, unpredictable weather, and mounting sustainability mandates, and are having to get smarter if they want to adapt and survive, says Wayne Potgieter from Avanza Solutions
For too long, the go-to fix has been the humble spreadsheet—a tool that, while useful for spotting trouble, falls short of steering projects through today’s complexities.
In an industry where margins are razor-thin and time is a precious commodity, these pain points can spell the difference between profit and collapse.
Yet, amid the headwinds, there’s a shift underway. Having worked shoulder-to-shoulder with Kiwi builders and developers, I’ve seen how smarter approaches—rooted in real-time connectivity and proactive decision-making—are helping firms not just survive but adapt to a fast-changing landscape. This isn’t about chasing the latest tech fad; it’s about finding practical ways to bridge the gap between ambition and execution.
Take project delays, a persistent thorn in the side of New Zealand’s builders. Whether it’s a sudden deluge halting a Canterbury site or supply chain hiccups stalling a Waikato build, the inability to respond swiftly can unravel timelines and inflate costs.
Today, forward-thinking contractors are turning to solutions that link field teams to the office instantly. Imagine site crews logging updates as they happen, like weather impacts, subcontractor progress, equipment snags, while project managers adjust plans on the fly. No more waiting for crumpled notes or end-of-week reports, or that dreaded spreadsheet update. Better communication reduces errors, keeps schedules intact, and lets teams pivot before small issues become costly derailments.
Then there’s the ever-looming threat of budget overruns. With remote sites dotting New Zealand’s rural heartlands and construction costs soaring—exacerbated by global supply chain pressures and local labour shortages—keeping finances in check can feel like an uphill battle.
Research like the BDO Construction Sector Report 2024 and MBIE’s building sector analyses suggests a significant portion of Kiwi firms struggle to track expenses in real time, often discovering overruns too late to course-correct. The answer lies in tying daily operations to financial oversight. When onsite teams can flag a material shortfall the moment it happens, managers can tweak budgets or shift resources instantly, preserving those slim margins. It’s not just about crunching numbers. Instead, it’s about using up-to-date insights to stay ahead of the curve.
Sustainability adds another layer of complexity. New Zealand’s push toward net-zero carbon buildings by 2050 is no small ask for an industry already stretched thin. From unpredictable rain and (literal) seismic risks to the isolation of far-flung sites, local conditions demand tools that keep pace. Daily updates that document weather impacts or site conditions aren’t just paperwork—they’re a lifeline for proving compliance with green mandates or justifying delays. And with cloud-based trends quietly reshaping how construction operates globally, Kiwi firms are finding that accessible, mobile-friendly systems let supervisors manage multiple sites without missing a beat, whether they’re on a muddy hillside or back at base.
For years, I’ve watched builders grapple with the realities of rising costs, labour crunches, and the weight of environmental goals. The ones thriving aren’t leaning on spreadsheets alone; they’re embracing ways to connect teams, streamline decisions, and scale effortlessly.
Managing multiple projects across New Zealand’s diverse terrain isn’t a pipe dream, but a necessity. Accurate, real-time data cuts through the noise, giving firms the agility to weather economic storms and regulatory shifts alike.
As economic pressures bite and sustainability becomes non-negotiable, the question isn’t whether we can keep building but instead moves towards how we build smarter. Perhaps the real edge lies in facing industry challenges with clarity and collaboration.
Wayne Potgieter is Head of Cloud Business Growth at Avanza Solutions, which provides MYOB Acumatica Construction Edition software to builders and developers in New Zealand.
