The chair of Fletcher Building is stepping down after news the company is set to lose hundreds of millions of dollars.

Sir Ralph Norris, who is of Ngāpuhi descent, resigned after it was announced the company, will lose around $700 million this year.

He admitted incompetence was behind the company's woes.

“The advice to the next chairperson of the company will be to make sure that the information that is coming to the board is accurate.”

The firm says it will stop bidding for construction projects and focus on completing its ongoing ones.