Building on Aore Island Vanuatu

Building on Aore Island in Sanma Province, Vanuatu is a different operating environment to Australia or New Zealand. The fundamentals of construction still apply, but the variables that drive cost, sequencing, and delivery are not the same. Weather windows shift fast, access is maritime, labour availability is finite, cultural obligations are real, and material supply can change week to week. This is why island projects need a different mindset: structured, staged, and built around logistics.

This article explains how building typically works on Aore, the delivery models people choose, how cost plus projects run in practice, what causes delays, and what decisions reduce risk. It is not a step by step build guide. It is a clear overview of the operating system behind successful island builds, so owners start with aligned expectations.

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The finish standard decision: exact vs practical

A critical decision in island building is the finish standard you are targeting.

If you are seeking:

• Exact architectural finish
• Tight detailing and metro level fit off
• Zero tolerance for variation

Then a professional building company is the best match because it is built around formal systems and higher precision standards.

If you are comfortable with:

• Strong, functional structures
• Minor variations that reflect local conditions and trade skill differences
• Practical methods that prioritise resilience and speed of delivery

Then a hybrid model can deliver excellent outcomes at a lower cost.

In simple terms:

If you want exact and polished, choose a professional builder.
If you want solid, cost effective and flexible, a hybrid model is suitable.

Why concept plans and images at the beginning are the biggest lever

Island projects fail most often due to ambiguous expectations. Ambiguity creates assumptions. Assumptions create variations. Variations create cost escalations and timeline resets.

Clear drawings, dimensions, and finish expectations upfront reduce risk. Visual references remove confusion. They also reduce time spent re explaining the same outcome to different workers across different weeks.

Practical examples of what “clear” looks like:

• A simple layout with dimensions for every wall line
• Roof type stated clearly with reference images
• Window and door sizes listed, not guessed
• Wet area locations fixed early to reduce plumbing changes
• Photos of the finish style you expect, not only a verbal description

The business impact of clarity is direct:

• Faster sequencing decisions
• Fewer reworks
• Cleaner procurement
• Reduced admin time
• Fewer disputes about what was assumed

Formal engagement: when a project becomes real

On Aore, labour is not scheduled and materials are not ordered until formal engagement is confirmed. Formal engagement generally means:

• A signed engagement agreement
• The required deposit or first stage payment received

This protects the project pipeline and it protects labour planning. It also reduces the risk of early work being done without the cash flow to support wages and procurement.

If you are still in research mode, that is fine. But research mode is different from project mode. Once your questions shift from general to site specific, you are requesting project work, and that is a paid engagement.

General information vs paid project work

Many people need basic orientation to island building. That is normal, and a lot of general education can be delivered through FAQs and information packs.

Project work starts when the conversation becomes specific to your land and your build. Examples include:

• Cost estimates or budgeting for your site
• Quoting and scope definition
• Site specific advice
• Material selection, sourcing, or ordering decisions
• Logistics, sequencing, and building strategy planning

At that point, engagement needs to be formalised. This creates a clean boundary, reduces endless back and forth, and ensures time is allocated fairly across active clients.

The delivery model: cost plus 10 percent

Most island builds operate on a cost plus structure. In this model:

• The owner pays the actual costs incurred to carry out the works
• A coordination margin applies, commonly 10 percent

There is:

• No fixed price
• No cost cap

This is not a loophole. It is a direct response to island variability. Weather, transport, supply constraints, labour fluctuations, and compliance variables make fixed price contracting high risk and often unrealistic in a remote environment. Fixed prices usually either fail or include heavy contingencies that inflate the headline price.

Cost plus operates best when the owner understands how actual costs behave and accepts that predictable cash flow is more important than theoretical budget certainty.

What actual costs include in practice

Actual costs are the real costs incurred to deliver the works. Common categories include:

• Labour wages
• Supervision and coordination
• Materials and hardware
• Transport by boat and vehicle
• Fuel and logistics
• Temporary works such as rain protection, site drainage, bracing, tie downs
• Planning, inspections, or compliance costs when required
• Variations, delays, and disruption costs

Labour is a core cost of the build. It is not optional. Once labour is scheduled or mobilised, wages are payable regardless of daily productivity because wages are tied to attendance and scheduling commitments.

What the 10 percent margin is buying

The coordination margin is not a random markup. It pays for the operating system that holds the project together:

• Booking, scheduling, and mobilising labour
• Managing wage timing and payment reliability
• Ordering, collecting, and staging materials
• Coordinating transport and logistics
• Site supervision and progress reporting
• Managing weather disruption and supply shocks
• Liaison with suppliers, officials, custom owners, and third parties
• Basic administration that keeps the build moving

This margin applies to actual costs, including labour and variations, because coordination effort increases when costs increase and when conditions become more complex.

Labour, wages, and working conditions

Labour in Vanuatu is typically engaged on a casual or daily basis unless otherwise agreed. Working hours are generally:

• Monday to Friday, 7:00am to 4:00pm
• Lunch, 12:00pm to 1:00pm

Overtime and public holiday conditions typically apply:

• Weekends or outside normal hours, time and a half
• Public holidays, double time by agreement

When projects require off island labour due to local shortages, mobilisation may include transport, accommodation, and welfare provisions. These need to be agreed and funded in advance because they become part of the actual costs.

Worker welfare is non negotiable. During wet season, workers still have after hours responsibilities and family obligations. If work or travel occurs in difficult conditions, basic welfare provisions may be required. Any additional time, delay, or welfare cost is treated as an actual cost.

Staged payments and cash flow: the rule is simple

All projects operate on staged payments. Each stage must be approved and paid in advance.

The operating rule:
No payment means no work.

Materials are not ordered until cleared funds are received. Actual costs are reconciled after each stage and adjusted forward.

This staging system exists because island projects are cash flow sensitive. Suppliers often require payment at time of purchase. Transport is often cash based. Wages must be paid reliably to retain labour. If cash flow stalls, the build stalls.

Build stages overview: how sequencing typically works

Even though every site is different, the build generally moves through the same stages:

Stage 1: Design and pre build
This stage aligns concept design with budget and locks down the plan set. It typically includes site walk, orientation, concept design, budget alignment, and final design sign off. Once sign off occurs, changes become variations.

Stage 2: mobilisation and site setup
This stage mobilises labour, marks out the site, and clears the building footprint only. It also sets up basic site hygiene and supporting infrastructure such as toilet, a basic shed, and water collection where required.

Stage 3: materials procurement
This stage is procurement strategy. There are usually two approaches:

• Single supplier sourcing, faster and simpler
• Mixed sourcing, potentially cheaper but higher risk and higher admin

Stage 4: structural build
This stage covers footings, foundations, framing, tie downs, and early roofing for weather protection. Inspections occur as required.

Stage 5: completion
This stage focuses on final adjustments, site clean up, and reconciliation of actual costs.

The key business insight is that procurement and cash flow must match the stage. Buying too early creates storage risk. Buying too late creates downtime.

Wet season operations: what owners should expect

Wet season does not mean zero work. It means variable productivity and a higher requirement for protective and temporary works.

Standard realities:

• Rain may stop or slow work on any day
• Productivity varies daily
• Labour remains payable once scheduled
• Work may shift to alternative productive or protective tasks

Timeframes are estimates only, not guarantees. Owners who succeed during wet season are the owners who plan for flexibility and prioritise roofing early, drainage early, and material protection early.

Materials: pricing, availability, and compliance risks

Material prices can change without notice. Substitutions may be required. The site coordinator is not required to source the cheapest price. Delays caused by extended price comparisons or sourcing changes are chargeable because they consume labour and admin time and can stall a site.

Two critical compliance areas matter on Aore:

Sand is regulated
Sand must not be purchased, transported, or used without a valid permit. Enforcement actions, delays, or stoppages caused by sand sourcing issues are common. Any resulting costs are treated as actual costs.

Fencing has a sourcing policy
Fencing materials must be purchased from licensed hardware suppliers or approved timber suppliers. Bush timber is not permitted. This is a risk management position to avoid disputes, compliance issues, and shutdowns.

Site security and owner risk

Island conditions create security risk. Once materials are delivered to site, they are typically at the owner’s risk. Secure storage is recommended. Theft and weather damage are known risks. Some owners deploy trail cameras or night watchmen as an owner cost measure.

The business logic is simple: material loss creates replacement cost and it creates downtime. Security is a cost control strategy, not just a safety issue.

Access and transport: the hidden cost driver

Access can be disrupted by weather and island conditions. Even when access is disrupted, labour payment obligations remain once labour is scheduled because labour has been committed.

Transport costs vary due to fuel, distance, sea conditions, load size, and availability. Delays, repeat trips, and waiting time are normal island logistics and are treated as actual costs.

This is why consolidation matters. Fewer, larger deliveries usually outperform many small deliveries.

Communication and site conduct: structure protects the build

Island builds need communication discipline. The most efficient operating model is:

• All instructions go through the site coordinator
• Workers are not asked to source materials
• On site interference is avoided

When multiple instruction channels exist, rework and delay increase. That creates cost and tension. A single channel reduces errors, protects workflow, and keeps accountability clean.

Communication updates: one weekly update as the baseline

To stay focused on progressing builds efficiently, communication is best managed through one consolidated weekly update. This update is the operational snapshot: what happened, what is next, what decisions are needed.

Additional emails, repeated queries, or unscheduled administration outside this structure may be treated as project management time and charged accordingly.

Urgent matters should be clearly marked urgent so they can be prioritised appropriately.

This is not about reducing communication. It is about creating a system where communication supports progress rather than consuming it.

Timeframes: indicative only, never a warranty

Island timeframes are estimates, not warranties. Indicative lock up periods can look like:

• Simple shed, around 2 weeks
• Small local style home, around 6 weeks
• Simple western style home, around 12 weeks
• Large spans or luxury builds, up to 8 months

Wet season conditions can extend these significantly. The correct planning posture is to treat timelines as ranges and build contingency into travel plans, supplier bookings, and finance staging.

Payments: what works when you are offshore

If you are not in Vanuatu, payments need to be frictionless. Most clients use Western Union for speed and immediate collection. This avoids international banking delays that can take days or weeks to clear.

Alternative options include depositing funds into a nominated local bank account for supplier or wage payments.

If you are visiting or relocating, opening a local BRED Bank account is a strong operational move. You can transfer funds into your own account and make direct payments locally. That creates better control, faster transactions, and reduced hold ups.

The overall success profile for Aore builds

The projects that perform best on Aore share the same characteristics:

• Clear concept plans and images from day one
• Staged payments aligned with the build stages
• Early procurement strategy decisions
• Acceptance of wet season variability
• Strong material protection and site security
• Communication discipline: one channel, one weekly update
• Realistic finish expectations aligned to the delivery model

This is not theory. It is operational reality. Island builds reward preparation, flexibility, and a disciplined project structure.

Closing position

The hybrid model has been successfully used on Aore since 2022 across multiple completed projects. It is practical, cost effective, and aligned with local conditions. Some clients will prefer a professional building company because their finish expectations require metro level precision and formal systems. That is a legitimate choice.

The commercial priority is alignment. When the delivery model matches expectations, and the project is run with staged cash flow and disciplined communication, island building can be efficient, transparent, and successful.

If you want to proceed, the next step is simple: formal engagement, clear scope, staged funding, and an agreed communication cadence.

Frequently Asked Questions – Building on Aore Island

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