His side is firmly entrenched in the top four and playing some good rugby.
Until last weekend when it was tipped up 19-16 by University at Watson Park, Harbour had not tasted defeat.
The sides met in last year's final. It was an epic match which ended in a 30-30 stalemate and a shared title, so there was plenty of pride riding on the outcome of the weekend's rematch.
Nicholas felt his side lost the game through some "dumb" mistakes. But overall he is very pleased with how his team is tracking.
"We are a lot better than we were at this point last year," he said.
"That is a consequence of a decent preseason and our recruitment has been really good. We've got a lot of quality youth players ... and that is building depth.
"We'll get our Otago boys back in the next couple of weeks and that will add another dimension, especially in our forward pack."
There are areas in which Nicholas wants to see improvements, though.
He has been disappointed by some of the game management. The tactical kicking game has not been executed as well as he would like and "we let the opposition out of their half with stupid penalties", he complained.
But Harbour has had some tremendous service out of the likes of massive prop Saula Mau and loose forward Joseph Williams, while fullback Sala Halaleva is a lethal counterattacker.
"Joey has played pretty much 80 minutes every game. He is straight out of school and has been playing really well.
"He is a smart player and a really good lineout option. He's been great, to be honest."
Halaleva has returned from a stint in Southland and has not lost any of his attacking prowess.
"We missed him last year. Mate, he's just been gold for us.
"He is getting his speed back and he's tough. He hits like a freight train."
Halaleva will miss the match against Southern at Watson Park tomorrow. He has a foot injury and is expected to be back in a week or two.
Mau is another who has stood out. The 18-year-old prop is still raw but will only get better with experience.
Harbour-Southern shapes as the game of the round. But the match between Kaikorai and Taieri at Bishopscourt has much appeal as well.
University started slowly but has found some good form in recent weeks and will start as favourite against a struggling Dunedin outfit at Logan Park. Zingari-Richmond hosts Green Island in the other match.