Case Study – AIA Building, Smales Farm

Introduction

At Smales Farm in Takapuna, 1M was tasked with a major refurbishment of the AIA Building – all while the site remained fully operational.

Beneath the construction programme were 24/7 facilities including a medical centre, childcare, gym, and retail outlets. The challenge: deliver modern HVAC upgrades and prepare new workspaces, without disrupting daily life for hundreds of people.

Despite the complexity, the project was completed within the revised budget, achieving significant savings for the customer and strengthening long-term relationships.

The Brief

The project required:

• Conversion of Levels 1 and 2 into co-working space, modelled on the neighbouring B:HIVE building
• Base building upgrades to Levels 3–5 for AIA’s open-plan office fit-out
• Mechanical services upgraded to align with modern energy efficiency and compliance standards
• Minimal disruption to ground floor tenants operating in a 24/7 environment
• Delivery against a tight construction programme, aligned with tenant handovers

Meeting these requirements demanded more than standard project delivery. With a live environment, complex tenant needs, and a tight programme, 1M’s role extended beyond mechanical upgrades – it was about ensuring continuity for existing tenants while preparing flexible, efficient spaces for new ones. This set the foundation for a delivery approach centred on collaboration, precision, and proactive communication.

The Solution

Collaboration with Rucon and tenants

Working closely with Rucon Construction, Smales Farm management, and tenants, 1M created structured work schedules to minimise disruption. High-impact activities were carried out outside peak hours, supported by clear and consistent communication to keep daily operations running smoothly. Regular updates and direct engagement with tenants helped address concerns quickly, giving them confidence that their operations would not be compromised during the works.

Integration with existing systems

Retrofitting modern systems into ageing infrastructure required precision. Using 3D modelling and detailed assessments, 1M optimised the design to ensure compatibility and avoided clashes with other building services. A key decision to replace the main heat pump achieved $800K savings – $600K within 1M’s scope and a further $200K from avoided structural modifications. The new system was fitted into the existing plantroom space with no disruption to operational systems, ensuring continuity for tenants throughout.

Self-delivery model

Transitioning from subcontractor-heavy delivery to a self-delivery approach was a turning point. In-house teams managed ductwork, pipework, insulation, and commissioning, ensuring consistent standards, greater efficiency, and faster responsiveness to programme demands.

“Having in-house teams instead of relying on subcontractors made the project far more efficient. It ensured consistency in quality and allowed for better responsiveness to project demands.”

– Scott Sefton, Rucon Construction & Property

Safety and compliance

With stringent safety standards on site, 1M aligned with Rucon Construction’s protocols while also applying industry best practices. Toolbox talks, detailed risk assessments, and proactive hazard management ensured no major safety incidents and full compliance throughout.

Commissioning and performance

Once installed, the new HVAC systems were fully commissioned to meet building load requirements and achieve energy efficiency targets. The upgrades were verified against current building codes, giving assurance of compliance and long-term reliability. System optimisation also reduced the overall plantroom footprint, lowering equipment demand and improving ease of maintenance for future operations.

“The key driver of the project was ensuring program milestones were met while remaining within budget. 1M played a pivotal role in achieving this, effectively managing their scope from base build upgrades to commissioning.”

– Scott Sefton, Rucon Construction & Property

Outcome

✅ Delivered within revised budget, achieving $800K cost savings.

✅ Seamless integration with legacy systems, ensuring round-the-clock tenants (including medical facilities) remained fully operational.

✅ Commissioned systems verified against building codes, delivering energy efficiency gains and reduced plantroom footprint.

✅ High customer satisfaction, resulting in an immediate follow-on contract valued at over $2M for additional HVAC installation across Levels 3–5.

For Smales Farm and its tenants, these outcomes meant a seamless transition into new workspaces with minimal disruption, confidence in long-term building performance, and assurance that budgets and timelines were respected. For AIA, the follow-on contract confirmed that 1M’s delivery approach aligned with both operational needs and future growth.

Conclusion

By combining technical expertise with transparent communication and a self-delivery model, 1M successfully delivered a highly complex refurbishment project in a live environment. The approach not only achieved significant savings but also secured future work, positioning 1M as a trusted partner for Smales Farm and its tenants – a result built on trust, respect, and long-term collaboration.

Fast Facts

• Project duration: December 2023 – February 2025
• Over $800K cost savings delivered ($600K within 1M’s scope, $200K from avoided structural works)
• 5-level commercial building with medical, childcare, gym, and retail tenants
• Conversion of Levels 1–2 into co-working space; base build upgrades for Levels 3–5
• Self-delivery model used for ductwork, pipework, insulation, and commissioning
• 58 additional fan coil units installed for AIA Insurance fit-out (follow-on contract valued at $2M+)
• Zero major safety incidents; full compliance maintained