Development Risk and the Elusive Guarantee of Auckland’s Network Capacity – WATERCARE

WATERCARE – Network capacity in Auckland

Let’s talk about something that makes developers, consultants, and anyone involved in the construction industry scratch their heads and mutter, “Hmmm…” under their breath. It’s called development risk, and it’s one of those sneaky little things that can turn a seemingly straightforward project into a logistical and financial nightmare.

Today’s head-scratcher revolves around Watercare, network capacity, and the tantalising question: Why can’t we have real-time data updates to avoid costly surprises?

A Developer’s Dilemma

Imagine this: You’re scoping a development. You’ve done your due diligence, consulted the experts, and even received a (nameless, of course) email from Watercare confirming that the network currently has capacity for your project. Great! You start spending money on consultants, reports, designs, and all the other pre-lodgement essentials.

Fast forward 8-10 months (because nothing in development happens quickly). You’re ready to lodge your consent application. But wait…what’s this? Watercare now says the network doesn’t have capacity.

Cue the record scratch.

The Burning Questions

How hard would it be for Watercare to use technology to feed data from new developments into their capacity model in real-time?
On a scale of 1-10, where 10 is “rocket science,” this feels like a solid 5. We’re not asking for AI to predict the future or for a quantum computer to solve world hunger. We’re talking about integrating live data into an existing system. Surely, in 2025, this isn’t a pipe dream?

Will our costs to date be reimbursed if capacity suddenly disappears?
Spoiler alert: No. Why? Because it’s called development risk, silly. Apparently, this is just one of those things you’re supposed to accept, like the weather or the fact that avocado toast is overpriced.

Why can’t Watercare guarantee capacity for a consent application lodged within the next 12 months?
This is the real kicker. We’re not asking for a lifetime guarantee, just a little certainty for the near future. But alas, the response is always the same: “We don’t know what’ll happen during that time.”

A System Stuck in the Past

Development is expensive. Consultants aren’t cheap, and neither are the countless hours spent preparing reports, designs, and applications. To spend all that time and money, only to be told at the last minute that the network can’t handle your project, feels like a slap in the face.

Here in Auckland, we’ve added plenty of bike lanes, but they’re often empty, which makes me question the council’s priorities. Instead of investing in essential services like upgrading our water network capacity, resources seem to have been diverted to projects that don’t address urgent needs. And let’s be honest, this isn’t just about Watercare. It’s about a system that seems resistant to innovation. In an era where we can track a pizza delivery in real-time and get live updates on traffic conditions, why is it so hard to get real-time data on something as critical as our water network capacity?

Here’s what needs to happen

1. Watercare (and other infrastructure providers) need to adopt systems that can integrate live data from new developments. This isn’t just about making developers’ lives easier—it’s about creating a more efficient, transparent, and reliable system for everyone.
2. If a developer is told there’s capacity at the start of a project, that guarantee should hold for a reasonable period like 12 months. This would give developers the confidence to proceed without fearing a last-minute rug pull.

Why should people care?

Development risk doesn’t just affect developers, it impacts the entire community and city. Delays and uncertainties can lead to higher costs, fewer housing developments, and ultimately, a slower response to the growing demand for infrastructure and housing.

So, the next time you hear the phrase “development risk,” take a moment to think about what it really means. It’s not just a catch-all excuse for uncertainty, it’s a call to action. A call for better technology, clearer communication, and a system that works for everyone.

Because let’s face it, in 2025, we should be able to do better.