IAWAI renewals contract offers benefits for consumers, workers and the wider sector

A new way of doing business is already delivering benefits for the security of the region’s water services and has drawn praise from a leading voice in the infrastructure sector.

IAWAI, the water services company serving the Hamilton City and Waikato District areas, has today announced the four lead contractors to maintain and replace the region’s waters infrastructure.

The 10-year contract, (five years with a right of renewal for a further five), allows IAWAI and the contractors to structure delivery of an estimated $670M in planned works across the next decade.

The strategy has been endorsed by Infrastructure New Zealand chief executive Nick Leggett.

“IAWAI's approach to a longer-term pipeline will offer value-for-money benefits for consumers, and more certainty for workers and businesses in the wider sector. It avoids the ‘boom and bust’ nature of infrastructure investment and supports a healthy local industry that retains crucial technical knowledge for lifeline utilities,” Mr Leggett said.

“Long term contractual arrangements and surety of work allows skilled workers to remain in New Zealand and is good for the local economy. Spreading confirmed renewals work across a range of contractors over a medium to long term allows more competitive pricing for consumers, rather than work being concentrated with just one or two nationwide suppliers.”

The works are made up of around $500M in scheduled drinking water and wastewater renewals and a projected $170M in stormwater renewals on behalf of the IAWAI shareholder councils. Excluding the stormwater works, the programme is only around 15% of IAWAI’s $3 billion capital programme over the next decade.

IAWAI Chief Executive Peter Winder said councils have historically worked on short-term contracts which didn’t provide certainty to the industry and didn’t allow for economies over a flexible work programme.

“The days of short-term thinking are gone. This approach means we have four lead contractors who bring a mix of skills, equipment and specialised staff.

“We know this work needs to be done. We already have a historic shortfall of more than $200M in works which we have to sort out to keep the services operating well. Our asset management plans tell us what needs replacing and fixing, and when.

“It makes sense to leverage that known spend into a long-term commercial arrangements which allow economies of scale.”

The four lead companies are:

• Schick Civil Construction Limited
• Waipa Civil Limited
• Civtec Limited (in an unincorporated JV with Phoenix Civil)
• Cambridge Excavators Limited

The procurement approach and contractual arrangements include requirements around using local subcontractors and ensuring, where practicable, that revenues flow back into the Hamilton and Waikato economies.

The procurement approach has been planned and developed over several months, following meetings with around 50 potential contractors and companies in Hamilton in early 2026.

Works delivered under the contract will be adjusted and reviewed throughout the contract period, through stormwater funding decisions by the shareholding councils, and through future Water Services Strategies.

The establishment of IAWAI enables better planning and delivery of water, wastewater and stormwater services without being constrained by council boundaries. The organisation has greater flexibility around debt and can take a more commercial, long-term view of known and priority investment.