Local contractors given heads-up on waters work

IAWAI – the new water company formed by Hamilton City Council and Waikato District Council – has confirmed it will contract about $500 million of renewals work through a long-term, relationship-based agreement.

While this model is common in other sectors, waters renewals have traditionally been managed by each council through short one- to three-year contracts.

IAWAI Chief Executive Peter Winder said that the previous approach was no longer fit for purpose. Days of short-term thinking were gone, he said.

“Water infrastructure is a complex, long-term, intergenerational business.

“We are now operating in a more commercial environment with a combined scale that is greater than either of the councils working alone. We intend to leverage that scale, build durable relationships and deliver better value for the communities we serve.”

More than 50 contractor representatives attended Monday’s briefing, following formal industry notification last week. IAWAI has signalled it will soon call for proposals for a five-plus-five-year contract covering close to $500 million of renewals work.

Winder said the shift would provide much-needed certainty for contractors and the civil construction sector.

“Instead of short-term arrangements that create uncertainty, we’ll offer a longer, more secure pipeline of work. That gives partners the confidence to recruit, train and invest in plant and equipment to lift productivity and capability.”

Watercare will continue delivering maintenance services in the Waikato district until July 2028, when responsibility transfers fully to IAWAI.

Winder said the renewals programme represents only a small part – about 15% of IAWAI’s $3 billion capital programme over the next decade. Contractors will be separately briefed this month on upcoming capital projects, including plans for a new $200 million wastewater treatment plant and bulk reticulation, new water reservoirs for Hamilton and a new sub-regional water treatment plant in Ngaaruawaahia to service north Hamilton through to Raahui Pookeka - Huntly.

“There is a substantial programme of work ahead, and smart contractors will look to collaborate and develop solutions that benefit everyone.”

IAWAI has also signalled it will protect opportunities for local businesses.

“We want Waikato businesses involved because a strong local civil construction sector strengthens our region,” Winder said.

Any company tendering for the renewals contract will be required to have an established base in the Waikato region.

Formal proposals for the renewals contract are expected to be called within weeks. The contract will be awarded by the IAWAI Board in June and is scheduled to begin on 1 July 2026, when the company becomes operational.

Further details are outlined in IAWAI’s Water Services Strategy, now open for public feedback. The strategy sets out how the company plans to manage growth, maintain assets and prioritise investment over the coming decade.