New Zealand’s water sector faces a productivity challenge, not just an investment challenge.

Improving water sector productivity will be critical to delivering better value from the investment ahead.

As new water entities establish themselves, their decisions about planning, procurement and operations will shape how well they deliver infrastructure. Communities will expect scale, pace and value. If we want to deliver more for communities without costs simply continuing to rise, the status quo is not an option.

Investment alone won’t solve the problem

As communities prepare to invest billions of dollars in water infrastructure, the challenge is not simply securing funding. It is converting every dollar invested into better outcomes for customers.

Continuing to do things the way we always have will not create the step change our industry needs or communities expect.

For the water sector, improving productivity means delivering more reliable infrastructure with less rework, greater certainty and lower whole-of-life cost from the resources available to us.

The opportunity to improve water sector productivity

We have a unique opportunity to rethink not only what is delivered, but how it is delivered.

Early planning decisions can unlock some of the biggest productivity gains. Planning, investigation, design and procurement often have a greater influence on cost, programme and operational performance than delivery itself.

To realise those gains, we need to bring the right expertise into the decision-making process at the right time.

Traditional delivery approaches often involve different parties contributing sequentially as a project progresses. While familiar, this approach can prevent technical, operational and delivery expertise from influencing key decisions early enough.

Clients, consultants and delivery partners create greater value when they contribute their expertise at the point where it can have the greatest influence. The goal should be to ensure the right knowledge informs the right decisions at the right time.

We often frame procurement debates around traditional versus collaborative approaches. In my view, that is the wrong debate.

The real test is whether the chosen approach delivers better outcomes through improved decision-making, greater cost certainty, more effective risk management and lower whole-of-life costs.

Having worked as an engineering consultant, infrastructure client and contractor, I have seen firsthand that bringing expertise together early leads to better outcomes. It allows that expertise to influence decisions, not simply validate them.

Doing things differently

Recent work by Hadlee & Brunton with Waitaki District Council provides a good example of this thinking.

In 2025, Fulton Hogan acquired a majority stake in Hadlee & Brunton, a specialist drilling and relining company based in Timaru.

Traditionally, an asset renewal programme might involve multiple parties. Consultants analyse asset condition data and develop recommendations before bringing in delivery contractors.

Waitaki District Council took a different approach by partnering with Hadlee & Brunton to support its three-year renewals programme.

Drawing on specialist equipment, asset assessment capability and practical expertise, Hadlee & Brunton helped assess asset condition and identify the most appropriate treatment options based on cost, condition and long-term performance outcomes.

What stands out to me is that the significance of this approach extends beyond the digital tools and technology being used. The client had a clear evidence base for deciding which assets required renewal, which could be treated and which could remain in service.

It also enabled delivery knowledge to inform prioritisation before the team implemented solutions. Rather than assuming an asset required renewal, the team could base decisions on condition, risk and value.

The lesson is simple: productivity improves when delivery expertise informs investment decisions earlier.

Building a more productive sector

We need investment, but spending more on water infrastructure alone is not the solution. We need to build a delivery system that consistently converts investment into better community outcomes.

That will require intelligent clients that clearly define outcomes, understand their suppliers and make informed investment decisions.

We also need capable consultants and contractors, strong supply chains and transparent performance information. Together, these enable continuous improvement.

If we want more affordable and resilient water services, we must become more productive in the way we plan, procure and deliver them.

Our team is working alongside clients across New Zealand to navigate reform, prioritise investment and improve infrastructure delivery outcomes. Drawing on international experience and local knowledge, we help organisations develop practical approaches to asset management, procurement and long-term water service performance.

 
Written by Simon Drew, National Water Manager, Fulton Hogan.