FBU Chart.

[Rep]

Another FBU construction project running behind...

http://www.nzherald.co.nz/business/n...ectid=11906349

"Last year, Precinct chief executive Scott Pritchard said all the retail centre was scheduled to be open by next October and the office tower by mid-2019.

Fletcher Construction is Commercial Bay's head contractor and chairman Sir Ralph Norris this week told a post-result media briefing at Penrose that all was well with the Commercial Bay contract.

Precinct's results presentation yesterday said the centre's delayed opening dates would not mean it loses money.

"Based on site progress to date, the revised opening plan is expected to mitigate risk from construction delays and help ensure a successful opening. We retain a positive working relationship with our main contractor and remain comfortable with the provisions of the fixed price construction contract," Precinct said of Fletcher.

A Precinct spokeswoman explained the situation further.

"Precinct has taken the decision to delay the opening of the retail centre following advice received from independent experts that the likely completion of the construction for the retail component of Commercial Bay will now be in Q1 2019 rather than Q4 2018," she said.

Shane Solly of Harbour Asset Management, which owns Precinct shares, expressed disappointment in the delay, indicating a pre-Christmas mall opening was what had been expected.

"The slight delay to Commercial Bay development was a small blemish on what was a solid result from Precinct," Solly said.

A Fletcher spokeswoman said yesterday: "The project is running to the programme agreed with the client."

Sources close to the project said extensions to the programme were provided to Fletcher under its contract, because of external circumstances which were outside the builder's control. Those extensions meant the building time line came too close to December for Precinct to be able to fit out its new shops in time for Christmas.


If Precinct aren't going to lose money due to the delays and FBU are allowed an extension, I'm wondering who does pay.... Auckland Transport?

[emveha]

Screw the shareholders. http://www.nzherald.co.nz/best-of-bu...ectid=11906880

[artemis]

Headline in NBR - Infrastructure industry on the brink of not having any bids for some contracts - More clients passing on more risk to the construction industry.

Behind the paywall so I didn't read, but expect recent FBU overruns will have spooked some interested parties, probably including Fletchers. Still, fewer (or no) contenders mean more possible to build in a bigger margin for risk.

[moka]

I see from ASB that Morningstar have ceased coverage on FBU this month.

Latest recommendation report
Valuation: $7.10 Last updated: 07/08/17
Ceased Coverage on Fletcher Building
As foreshadowed in our note on July 17, 2017, we cease coverage on Fletcher Building. We periodically adjust our coverage as necessary based on stock outlook, client demand, and investor interest, and may reinitiate coverage in the future.

[BlackPeter]

Brian Gaynor's view on the state of the building industry (not just) in NZ:

http://breakingviewsnz.blogspot.co.n...-that-got.html

Worthwhile reading:

[percy]

BP,thanks for the link.

What's the bet only 80,000 will get built for the same money.?

[BlackPeter]

BP,thanks for the link.

What's the bet only 80,000 will get built for the same money.?

You that optimistic ?

[percy]

You that optimistic ?

"Let's do this.",,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,?............ ....................lol.

[winner69]

From The Australian - With respect to Fletcher Building, it is understood that investment bankers — likely to be those from its house banker Credit Suisse — are believed to be around the market concocting break-up scenarios for the company ..... Fletcher is known to have been eager to sell its Australian operations that it acquired through its acquisition of the Crane Group some time ago, but the understanding is that the operations have not attracted any buyers

[Beagle]

http://www.sharechat.co.nz/article/0...r-projectshtml

Its surprising with all those high priced executives paid many hundreds of thousands of dollars and the fact that this company is in the business of construction that they can't build a rigorous development quoting model for various different forms of projects and need to hire outside consultants.