How do we control the spending on council construction projects? Should there be a cap on spending per square metre?
Council capital spend is about $4bn in 2025/26. Better Value Projects has saved $8m+ so far, but should mandatory per-square-metre benchmarks follow?
Q.4.1 — Building & Construction
How do we control the spending on council construction projects? Should there be a cap on spending per square metre?
In the 2025/26 financial year, Auckland Council is investing around $4 billion in capital projects, with a similar scale planned for the following year. Too often projects come with higher-than-expected costs, delays, and scope changes that ultimately burden households through rates.
In response, the council launched the Better Value Projects programme in early 2025, embedding principles like clearer problem definition, rightsizing projects, standardised designs, and maximum prices. It has already delivered more than $8 million in savings in its first six months.
A well-designed per-square-metre cap, tiered by project type, location, and complexity, would compel value engineering and discourage unnecessary premium features. Private residential construction in Auckland typically ranges from about $3,800 to $4,500 per square metre; public projects often benchmark higher due to seismic, accessibility, and durability requirements. The smarter path lies in strengthened mandatory benchmarks with independent peer reviews and strict change-control — rather than an inflexible legislative ceiling.
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Written by Mark Pervan, Director, City Builders Association Limited
Mark Pervan is the founder and director of City Builders Association Limited, an Auckland civic think tank funded solely by membership. He has run manufacturing plants, with global sourcing and supply chain management in the same role, and has been project manager on multiple commercial and residential building projects. He was also responsible for product design and development across multiple mediums, and served as sales and marketing manager. He is a company director and business owner, including as a director of Idea Foundry. He served three years as an elected member of the Puketāpapa Local Board (2022–2025) and was a council candidate for the Albert-Eden-Puketāpapa ward of Auckland Council.
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