The Dunedin hospital project is expected to cost more than $2 billion and be completed in six to 10 years, making it one of the most expensive builds in the city’s history.
Christchurch firm Southbase secured the main contract for the outpatient building, and the government has been in negotiations with Australian firm CPB contractors for the inpatient building. Christchurch-based Ceres Environmental carried out demolition work on the site as well as piling on the inpatients building site.
A Dunedin building firm manager, who declined to be named, said they were concerned about the tender processes and the general lack of communication with "local" firms about potential opportunities.
"We’re going to have external subcontractors coming in, stealing staff and knowledge from local firms.
"You can’t always stop it, but this would be just short term for the duration of the contract."
When the out-of-town Australian-based contractors left, staff would lose their jobs with them also, the manager said.
"Because a lot of the work hasn’t gone out to open tender, it’s not going to be as competitive as it could have been.
"There’s going to be a vacuum in a few years’ time. If the local contractors aren’t involved in the hospital building, all of the other work is going to dry up."
Many Dunedin firms had not only the expertise, but also a lower carbon footprint, the manager said.
"There should be a directive where you engage with local companies even if you didn’t necessarily contract them to do the work.
"Instead, we’ve barely heard a word."
An ideal outcome would be more co-operation over the project and soon, the manager said.
"We’d be happy, even if it just covered our costs.
"This is an opportunity that’s not going to happen for another generation in Dunedin.
"Projects such as the new Dunedin hospital are good builders of people; and change lives."
The manager felt Dunedin firms were being "shut out".
"Dunedin is small, but we’ve got some decent local employers and at least we would be keeping the money in Dunedin — this project would have been awesome for the broader economy."
They were also worried the approach could have on Dunedin’s economy.
"Right now we’re really busy, but what happens when the larger hospital build winds up and other contracts go on hold in a couple of years’ time? Local firms could experience a mini-recession if not involved."
Health New Zealand Te Whatu Ora (HNZ) infrastructure delivery head Blake Lepper said the contractual and labour scales were "beyond what Otago, or our biggest cities, are used to and we have worked extensively to ensure we get local and national companies involved".
"Due to the size and complexities of these buildings, Health NZ has secured companies with appropriate and proven expertise, as well as the financial ability carry it out."
HNZ had the relationship with the main contractors, which then employed the subcontractors, he said.
"With a project this size they work with subcontractors they know can deliver as well as working with local businesses on the ground to provide services.
"Sometimes the large financial and labour scales can be off-putting for local companies, and act as a commercial barrier to subcontracting as well."
Contractor CPB had held events with local businesses, he said.
Southbase had employed "a number of" local companies to work on the outpatients building, he said.
"In the case of Foleys, the hospital outpatient project will be one of the largest the Dunedin-founded company has undertaken, and it expects to have 25 staff working full time at the site during the peak of construction."
HNZ was also supportive of Workforce Central, which was established specifically to get local trade involvement and training, Mr Lepper said.
Naylor Love group manager pre-construction Ian McKie said there had already been tender processes, but there was "no reason" Dunedin firms could not become involved in the build as it progresses.
"Dunedin firms would certainly have the size and expertise required," he said.
"There are still opportunities to be had in this project."
