Loss estimation methods utilised by stakeholders involved on residential post-canterbury earthquake reconstruction.

Abstract

The importance of natural disaster economic loss estimations is paramount, in terms of assisting policy makers in mitigation decisions, risk assessments and tracking losses as they occur. Historically the New Zealand construction industry and associated affiliate stakeholders has not employed a systematic method to estimate, or record the losses that have occurred as a result of natural disasters. Therefore records are lacking. The Canterbury earthquake of February 22nd 2011 in particular, was the most significant natural disaster in New Zealand’s history, with economic loss occurring at all levels of the New Zealand economy. There have been numerous complexities around how to measure this loss, and what should be included or excluded in the estimates. Government’s direct intervention in respect of residents’ red zoned properties has added a further complication when trying to establish realistic loss estimation methods and data storage. Loss estimations have historically relied heavily on insurance data collected after large scale events. This exploratory research aimed to investigate the loss estimation methods / evaluative processes utilised by stakeholders involved in the post-disaster residential sector of Christchurch, and compare the findings to the reviewed literature. Semi-structured interviews were conducted with six selected participants from five insurance and project management companies in Christchurch. The findings suggested that there is a lack of regulation, no systematic framework, nor any consistency of process within the New Zealand construction industry, or their associated stakeholders.