I, Stewart Menzies Harrison, of Christchurch, Registered Quantity Surveyor, will say:
Personal Details
1My full name is Stewart Menzies Harrison.
2I am a registered quantity surveyor practicing at Harrisons Quantity Surveyors (Harrisons). Harrisons is located at 100 Victoria Street, Christchurch.
Employment
3I am a director and shareholder of Stewart HarrisonLimited, which trades as Harrisons. I am also a director and shareholderof Ian Harrison & Associates Limited. Harrisons took over Ian Harrison & Associates Limited's business in 2014.
Qualifications and Experience
4I hold a New Zealand Certificate of Quantity Surveying. In 2006, I became a Registered Quantity Surveyor.
5I am a Fellow of The New Zealand Institute of Quantity Surveyors Inc. (FNZIQS).
6I am a Member of The New Zealand Institute of Building Inc. (MNZIOB).
7I am currently the NZIQS:
7.1Canterbury Branch Vice Chairman.
7.2Canterbury Branch Membership Interview Panel Member
7.3National Marketing Working Group Member.
7.4National Insurance Working Group Member.
8I have practiced as a quantity surveyor and project manager in New Zealand since 1990.
9I have previously given evidence in the High Court as an expert on rebuild and repair costings in Christchurch following the Canterbury earthquakes.
10I have previously acted as an expert witness in the High Court.
Code of Conduct
11Although this is not an Environment Court Hearing, I have read, and agree to comply with, the Code of Conduct for Expert Witnesses contained in the Environment Court’s Consolidated Practice Note 2014 in giving evidence before an independent hearing commissioner in this matter.
12All my evidence is within my expertise and I have considered and stated (where applicable) all material facts known to me which might alter or qualify the opinions I express.
13I have no financial interest in the outcome of this hearing.
Expert evidence
14I have been asked to give evidence on the estimated cost to strengthen the building to 100% NBSbased on documentation provided to me by Mr Tim Gwatkin of TM Consultants.
15I have also been asked to give evidence on the estimated cost to refurbish the strengthened building to a tenantable standard for the reuse of it, based on documentation provided to me by Mr Bill Skews of Skews Architects Ltd. From this documentation, the refurbishment for reuse included partial replacement of exterior roofing & wall cladding materials & flashings; replacement skylights; replacement canopies to the street frontage; partial replacement of timber floor framing and floorboards; supply & installation of a new stairway to the exterior; supply & installation of fire rated ceilings; supply & installation of fire rated linings to existing columns; supply & installation of a fire alarm system; supply & installation of a mechanical ventilation system to the mezzanine area, lining & insulating the block boundary walls, and removal & replacement of partitions as necessary to effect the works.
16To prepare my cost estimates I have:
16.1Read documents about the building, including:
16.1.1Plans, and associated notes contained on them, from TM Consultants dated 15 May 2015 – attached for reference as “AA”;
16.1.2Condition Report from Skews Architects dated 8 August 2016;
16.1.3Viewing photographs of the exterior and interior of the building.
17There is a strengthening estimate and a refurbishment estimate. Both use quantitysurveying experience, market rates obtained from merchants, suppliers, builders and subcontractors from Harrison’s archive of pricing, supplied by builders we close tenders for. The difference in the exclusions applied in each report is explained below.
18The materials allowed in both estimates are currently available.
Cost to strengthen the building
19The estimated cost to strengthen the buildingis $855,727.00.This is the figure shown in the estimate summary at page 1 (“A”) and in more detail at pages 1 to 8 in the trade breakup (“B”).
20The estimate is dated 7 July 2015.
21The figure includes builder’s margin.
22The estimate excludes GST, contingency sum, contract works insurance, replacement of borer damaged floor joists, professional fees, local authority fees and future increased costs. These exclusions are detailed on pages 1 of the estimate summary. For the sake of completeness, I note that my usual practice is that the estimate would have the same limited exclusions as the estimate for refurbishment costs, as set out in paragraph 27 below. The reason for the difference in this case is that, at the time I was asked to provide an estimate of the strengthening costs in mid 2015, I was not aware of the potential resource consent application and hearing. Had I known, I would have reduced the exclusions down to just GST and future increased costs to provide a more comprehensive estimate. However, the relevance is that without these exclusions, the estimated strengthening costs for the building are likely to be higher than the $855,727 figure in my 7 July 2015 report.
23If my 2015 report is updated to 2017 costs and the additional exclusionscosted, then a reasonable updated estimate of strengthening costs is $1,103,282.00. This is the figure shown in the estimate summary at page 1 (“C”) and in more detail at pages 1 to 9 in the trade breakup (“D”).
24The estimate is dated 19 January 2017.
25The figure includes builder’s preliminary & general and margin, building consent, professional fees, CW Insurance, and a 15% contingency allowance.
26The estimate excludes GST, replacing borer damaged floor boards and future increased costs. These exclusions are detailed on page 1 of the estimate summary.
Cost to refurbish the strengthened building
27The estimated cost to refurbishandstrengthen the building, is $2,630,381.00. This is the figure shown in the estimate summary at page 1 (“E”) and in more detail at pages 1 to 11 in the trade breakup (“F”).
28The cost of refurbishment alone is $1,527,099.
29The $2,630,381 figure thereforeincludesthe strengthening costs noted in paragraph 23 above.
30The estimate is dated 2 September 2016.
31The figure includes builder’s preliminary & general and margin, building consent, professional fees, CW Insurance, and a 15% contingency allowance.
32The estimate excludes GST and future increased costs. These exclusions are detailed on page 1 of the estimate summary.
33Note the “refurbish and strengthen” estimate includes builder’s preliminary & general at 6% and professional fees at 15% whereas the “strengthening” estimate includes builder’s preliminary & general at 8% and professional fees at 5%. This is simply on the basis that the strengthening estimate, at the time, took no account of the subsequent refurbishment requirements. I would expect both the strengthening and refurbishment work to occur concurrently thus the adjustment in the percentages adopted.
Date:19January2018......
Stewart Menzies Harrison
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