14 | REGIONAL DEVELOPMENT Workforce Central Dunedin - Southbase Construction Specialists in Commercial Construction 03 474 1392 | 72 Willis Street, Dunedin | dunedin@abl.co.nz www.abl.co.nz JJSTEEL.NZ P: 03 366 8679 M: 021 322 847 E: admin@jjsteel.co.nz Structural Steel Fabrication & Erector SOUTH ISLAND WIDE SOUTHBASE CONSTRUCTION LTD T T Karen Phelps Strengthening regional capability The $1 billion-plus project is the largest health infrastructure investment ever undertaken in New Zealand. As cranes rise above the central city skyline, the New Dunedin Hospital is becoming more than a landmark health development, says Raymond Clark of Workforce Central Dunedin. “Under the Government Procurement Rules V5, which came into effect in late 2025, major public projects such as this must now intentionally deliver measurable economic benefits. Rule 8 applies to the hospital build, requiring contractors to demonstrate how public investment will strengthen regional capability, workforce development and local supply chains,” he says. “Usually, agencies or contractors who tender choose the lowest price proposal which meets the requirements of the job. Economic benefits encourage a shift away from lowest possible cost to awarding a tender which includes the price of the public value the project’s work will create.” The $1 billion-plus project is the largest health infrastructure investment ever undertaken in New Zealand. Delivered in two stages, it will include a 10,000sqm Outpatients Building opening in 2026, followed by an Inpatients Building housing an expanded emergency department, ICU, operating theatres and a dedicated primary birthing unit. With a five Green Star rating, it promises world-class, sustainable healthcare facilities for the southern region. Raymond says that economic benefits mean the emphasis is now firmly on public value: ensuring that government spending actively builds stronger regional economies. For the New Dunedin Hospital, that means investing not only in concrete and steel, but in people, training pathways and local enterprise, he says. “This is the wider impact that sits beyond the wiring, plumbing, steel, and concrete. The building work can last decades. The benefits created can last generations.” Workforce Central Dunedin was established to help deliver that wider impact. A governance group of industry leaders and kaitiaki representing mana whenua, it connects local people with employment and training opportunities linked to the hospital project. It coordinates on-site inductions, licencing, compliance training, literacy and numeracy support, cadetships and apprenticeships. “Workforce Central Dunedin gives easy access to training, upskilling and career development plans for workers,” says Raymond. “It also supports employers and employees with career development, pastoral care, Mates in Construction, Health and Safety on site.” He says the scale of the build demands strong collaboration. Main contractor Southbase Construction began work on site in 2023. Senior project manager Anthony Franicevic says there have been no issues with the supply of materials or labour and that around 260 people have been on site at peak, supported by 23 dedicated managerial staff. “We combine technology with proven experience and an ambition to lead better industry practices to find and produce solutions that deliver sustainable value economically, environmentally and socially,” explains Anthony. Raymond says that under Rule 8, contractors must think carefully about the ripple effects of every purchasing decision. “Buying from local suppliers fosters regional capability,” he says. “Taking on apprentices builds the next generation workforce. Coordinating training across subcontractors lowers costs while lifting skill levels across the board.” He says the inclusion of wrap-around services is critical. “It is of vital importance that project investment by the tendering agency includes funding for wrap-around services so economic benefits can flow downstream to deliver more than the physical structure, but also positive outcomes beyond the build.” On site, that has translated into practical initiatives: coordinated training blocks delivered collectively to reduce duplication, pastoral care programmes supporting worker wellbeing, and pathways for school leavers, migrants, career changers and those from the disabled community to secure meaningful employment. “Our dream is that the workforce in Dunedin has the financial means to live well, can improve awareness in our Māori cultural heritage in Ōtepoti and have less waste because we champion clean construction,” says Raymond. He says that for contractors, the message is clear. “Economic benefits are not an optional add-on; they are now integral to winning and delivering public sector projects. “By building public value into tender pricing and planning from the outset, companies can strengthen their reputation, retain staff and help create a healthier regional economy.” “This is the wider impact that sits beyond the wiring, plumbing, steel, and concrete. The building work can last decades. The benefits created can last generations.”
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