EP 57 · Yarns with Andy

Shane Brealey

Hosted by Andy Alagappan
Simplicity LivingHousingNegotiated ContractsNo RetentionsProductivityTrustPrefabProduction Management

About This Episode

Shane Brealey, Managing Director of Simplicity Living, delivers one of the most provocative episodes in the series, laying out a radically different model for NZ construction. His track record speaks for itself: 10 years with zero extension of time claims, zero disputes, less than $10K in legal fees on $360M of work, and 13 projects all delivered 20-35% cheaper and faster than the next best alternative. The secret: no tendering, no retentions, no performance bonds, a 4-page subcontract, and a philosophy that reframes construction managers as "production managers" who are "servants to subcontractors." Shane gifted his company NZ Living (700 homes) to Simplicity KiwiSaver, a not-for-profit owned by a charity, and pledged 10 years of pro bono work. The conversation makes a compelling case that trust, not contracts, is the missing ingredient in an industry Shane describes as a "red ocean, doggy dog for breakfast."

Key Topics Discussed

  • NZ Strong track record. 10 years, zero extension of time claims, zero disputes, less than $10K in legal fees on $360M of work. Compare to Multiplex: $500K/year external legal budget plus a full-time in-house lawyer.
  • Simplicity Living's three principles. (1) Build 10,000 homes in 10 years. (2) Outsized returns for Simplicity KiwiSaver members (fund grew from $1.86B to $7.4B). (3) Freely share IP and "be the crash test dummy of the industry."
  • No tendering. All negotiated contracts. Tendering adds approximately 25-30% waste premium through risk allowance, pricing effort, and non-winning bidders. On the first project, Shane beat the independent cost plan by approximately 30%.
  • Simplified contracts. No retentions, no performance bonds, 4-page subcontract with project-specific details only. References standard master builders conditions, no special conditions, no lawyers needed.
  • 13 projects, all 20-35% less cost. Beat independent cost plan by approximately 30% on the first project, then repeated 12 more times.
  • Production managers, not construction managers. Language change reflects mindset change. "Servants to subcontractors." Pre-loading floors with fit-out materials, standardized hardware boxes per apartment typology (8-9 types), packing off 20mm for electrician cabling, fixing into formwork before concrete pour (no drilling into concrete).
  • Trust as the missing ingredient. Industry is a "red ocean, doggy dog for breakfast." Staff say they can't go back to the old industry.
  • Sold 700 homes $30M under valuation. Approximately $50K per home under market, sold out in minutes online.
  • Gifted company to charity. Gifted NZ Living to Simplicity (not-for-profit owned by charity) and pledged 10 years of pro bono work.
  • 1 RFI per working day is the NZ norm, Shane's projects get zero. Industry standard on NZS 3910 build-only commercial projects is approximately one RFI per working day raised by the construction team, with at least 2 FTEs absorbed managing them on both sides (often way more). Shane's projects generate almost none, because the contract, sequencing, and relationship eliminate the information gaps that drive them.
  • Variations: ~dozen on a $200M project. versus industry norm of hundreds. Total: less than a dozen variations across an entire $200M build.
  • Meeting load: 1.5 meetings per project across a 2-year project. versus the industry norm of weekly progress meetings running into the hundreds. Trust eliminates the meeting cadence because information flows through the daily working relationship.
  • Productivity hub: 870 visitors through the hub since July. Government, Kāinga Ora, architects, engineers, builders have walked through Shane's site to see the model in operation. He treats IP sharing as part of the mission, not a competitive threat.
  • Construction Accord, "four years, language review". Shane's scorching assessment of industry reform: four years of Accord work produced a plain-language review of NZS 3910, not the structural reform the industry needed.

Notable Quotes

"Risk is a four letter word. So is gold. And we see risk as gold.", Shane reframing the industry's core fear.

"It's hard to fly like an eagle when you're surrounded by turkeys.", Shane on why he left corporates to start NZ Strong.

"Red ocean, doggy dog for breakfast.", Shane on NZ construction industry culture.

"Servants to subcontractors.", Shane's reframe of the construction manager role.

"Be the crash test dummy of the industry.", Shane on why Simplicity shares its IP freely.

"On a commercial project it's about one RFI per working day raised by the construction team. On a build-only NZS 3910 contract. That's probably 2 FTEs if you take both sides. Way more than that, actually.", Shane naming the hidden cost of the standard model.

Shane's staff: they can't go back to the old industry.

Guest Background

Shane Brealey is the Managing Director of Simplicity Living. A civil engineer (Canterbury), he spent 15 years at corporates including Lend Lease, Mervac, and Multiplex. He founded NZ Strong with Jamie Valance, then NZ Living (700 homes, the largest Kiwi-built home provider). He gifted NZ Living to Simplicity KiwiSaver, a not-for-profit, and pledged 10 years of pro bono leadership.

More Episodes
Andrew Green
EP 87
Andrew Green
Data Centres · Hyperscale
Tim Porter
EP 86
Tim Porter
Timber · Mass Timber
Anastasija Taranenko
EP 85
Anastasija Taranenko
Hvac · Building Services
Mahesh Muralidhar
EP 84
Mahesh Muralidhar
Startups · Venture Capital
Raji Rai
EP 83
Raji Rai
Project Management · Commercial Interiors
Dr Troy Cole
EP 82
Dr Troy Cole
Construction 4 0 · Hira
Ben Ransley
EP 81
Ben Ransley
Smart City · Urban Tech
Derek Bilby
EP 80
Derek Bilby
Concrete · Sustainability
Richard White
EP 79
Richard White
Equipment Hire · Market Recovery
Alex Hulme
EP 78
Alex Hulme
Electricians · Trade Group
Hugh Goddard
EP 77
Hugh Goddard
Civil Infrastructure · Employee Ownership
Vincent Revell
EP 76
Vincent Revell
Urban Planning · Co Housing
Nick Leggett
EP 75
Nick Leggett
Infrastructure NZ · Pipeline
Blair Chant
EP 74
Blair Chant
Project Controls · Andy Origin Story
Mark Roberts
EP 73
Mark Roberts
Construction Waste · Sustainability
Murphy O'Neal
EP 72
Murphy O'Neal
Innovation · Compliance
Jake Robinson & Amelia Robinson
EP 71
Jake Robinson & Amelia Robinson
Small Business · Social Media
Katherine Hall
EP 70
Katherine Hall
Vocational Education · Concove
Daniel Ross
EP 69
Daniel Ross
Construction Law · Nec3
Maria Mingallon
EP 68
Maria Mingallon
AI Adoption · Mott Macdonald
Daniel Small
EP 67
Daniel Small
Quantity Surveying · Pqs
Derrick Edward & Misha Afon
EP 66
Derrick Edward & Misha Afon
AI · Generative AI
Arena Williams
EP 65
Arena Williams
Labour Party · Housing
Lizzi Whaley
EP 64
Lizzi Whaley
Interior Design · Wellbeing
Pamela Bell
EP 63
Pamela Bell
Nziob · Prefab
Vincente Valencia
EP 62
Vincente Valencia
Ppp · Infrastructure Vision
Kevin Leadingham
EP 61
Kevin Leadingham
Brain Drain · Recruitment
Heather King
EP 60
Heather King
Tendering · Boom Bust
Cameron Luxton
EP 59
Cameron Luxton
Act Party · Lbp
Daiman Otto
EP 58
Daiman Otto
Dfma · Offsite Manufacturing
Natasha Possenniskie
EP 56
Natasha Possenniskie
Etc · Engineer To Contract
Rafael Caso
EP 55
Rafael Caso
Mental Health · Mental Fitness
Silke Deul
EP 54
Silke Deul
Cultural Diversity · Immigration
Jono Lockwood
EP 53
Jono Lockwood
Construction Tech · AI
Murphy O'Neal
EP 52
Murphy O'Neal
Modular Construction · Aluminium
Ben Redwood
EP 51
Ben Redwood
Construction Tech · Sustainability
James Hunt
EP 50
James Hunt
Brain Drain · Australia
Chris Penk
EP 49
Chris Penk
Government Policy · Building Products
Mike King
EP 48
Mike King
Mental Health · Suicide Prevention
Alan Farragher
EP 47
Alan Farragher
Mental Health · Diamond Workwear
Janine Van Leeuwen
EP 46
Janine Van Leeuwen
Conscious Leadership · Servant Leadership
Alan O'Connor
EP 45
Alan O'Connor
Interiors · Relationships
James Braddock
EP 44
James Braddock
Residential Construction · BIM
Blair Chant
EP 43
Blair Chant
Government Vs Private · NZS 3910 Revision
Yash Idnani
EP 42
Yash Idnani
Architectural Design · Medium Density
Drew Knowles
EP 41
Drew Knowles
Mental Health · Stress
Gary Moore
EP 40
Gary Moore
Plumbing · Hydraulic Design
Simon Court
EP 39
Simon Court
Infrastructure Policy · Rma Reform
Sam Newell
EP 38
Sam Newell
Entrepreneurship · Young Professionals
Kieran Mackenzie
EP 37
Kieran Mackenzie
AI Vision · Safety Technology
Mark De Lacey
EP 36
Mark De Lacey
Interface Specifications · Contract Integration
Fiona Bycroft
EP 35
Fiona Bycroft
Diversity · Equality
Bjorn Guttenbeil
EP 34
Bjorn Guttenbeil
Prefab · Panelized
Bayard McKenzie, Ben Speedy
EP 33
Bayard McKenzie, Ben Speedy
Design Construct Divide · Mid Density
Brett Christie
EP 32
Brett Christie
Arrow International · Construction Collapse
Dave Morton
EP 31
Dave Morton
Geotechnical · Ground Risk
Hamish Race
EP 30
Hamish Race
People First · Civil Construction
Brighid Shelton
EP 29
Brighid Shelton
Behind The Scenes · Women In Construction
Panel
EP 28
Panel
Procurement · Panel Discussion
Declan Bannon
EP 27
Declan Bannon
Health And Safety · Scaffolding
Anonymous
EP 26
Anonymous
Government Procurement · Kainga Ora
Raveen Jaduram
EP 25
Raveen Jaduram
Leadership · Culture Change
Bryce Caldwell
EP 24
Bryce Caldwell
Market Downturn · Subcontractor Risk
Cian Brennan
EP 23
Cian Brennan
Contract Administration · Dispute Avoidance
Sanjesh Lal
EP 22
Sanjesh Lal
Housing Affordability · Public Private Collaboration
Jen Jones
EP 21
Jen Jones
Renovations · Budget Blowouts
John Baigent
EP 20
John Baigent
Margin Erosion · Transactional Competence
Michael McFadden
EP 19
Michael McFadden
Cash Flow · Early Payment
Brent Tassel & Hayden Bradfield
EP 18
Brent Tassel & Hayden Bradfield
Digital Technology · BIM
Brigitte Dunbar
EP 17
Brigitte Dunbar
Burnout · Wellbeing
Drew Knowles
EP 16
Drew Knowles
Mental Health · Stress
Murray Alcock
EP 15
Murray Alcock
Property Development · Standardisation
Shaun Foster
EP 14
Shaun Foster
Sales · Suppliers
Harriet Birchall
EP 13
Harriet Birchall
Recruitment · Labour Shortages
Ali Alshami
EP 12
Ali Alshami
Site Engineering · Unbuildable Design
Blair Chant
EP 11
Blair Chant
Subcontractors · Innovation
Raine Selles
EP 10
Raine Selles
Construction Law · Claims
Farzam Farzadi
EP 9
Farzam Farzadi
BIM · Digital Engineering
Timo Skog
EP 8
Timo Skog
Vertical Transportation · Supply Chain
Jordan Hetet
EP 7
Jordan Hetet
Build Only · Design And Build
Martin Edwards
EP 6
Martin Edwards
Eci Pcsa · BIM
Marc Parsons
EP 5
Marc Parsons
Lean Construction · Kaizen
Matt Stanford
EP 4
Matt Stanford
Last Planner · Project Controls
Brad Jones
EP 3
Brad Jones
Controls And Planning · NZ Vs UK
James Hunt
EP 2
James Hunt
Risk Management · Project Controls
Alex Kay
EP 1
Alex Kay
4D Planning · Quantity Surveying