How do we control the spending on council construction projects? Should there be a cap on spending per square metre?
Council capital spend is ~$4bn in 2025/26. The Better Value Projects programme has already delivered $8m+ in savings — but should mandatory per-m² 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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