TENDER ACCEPTED.

Auckland Star, Volume LXVII, Issue 179, 30 July 1936, Page 8

TENDER ACCEPTED.

BIRKENHEAD DRAINAGE. RISE IN COSTS OF LABOUR. Tenders for tlie first two contracts in the Birkenhead drainage scheme were opened at a 0 meeting- of the borough council last night. The lowest tender, that of Grinter Brothers, Mount Koskill, for the contracts for tanks and outfall aiul for the first section of the reticulation, was accepted. The prices were £5000 for tanks and outfall and £13,939 for the reticulation, the council supplying all pipes and fittings. Of the four tenders received, three embraced both tanks and outfall and the first reticulation section, while one was for the tanks and outfall only.

"Recent legislation with regard to labour and wages has increased the cost of all labour required for carrying out the work by approximately 20 per cent, amounting in all to about £3500, so that my original estimate of £35,000 now becomes £38,500," stated Mr. R. P. Worley, consulting engineer to the council, before the tenders were opened. "If this is borne out by the tenders received, it will be necessary for the council to receive by way of subsidy a sum of £10,500." Engineering fees at 5 per cent of the total cost, together with about £500 for clerks of work, would have to be added. The cost of pipes, manhole covers and fittings to be supplied by the council would be as fol-lows:-—Contract No. 1 (tanks and outfall), £720; contract No. 2 (first section of reticulation), £(3050; contract No. 3 (balance of reticulation), £3850, making a total of £.10,020. .

Estimating the cost of the completion of the reticulation on the price of the tender accepted, Mr. Worley said tlie cost of the whole scheme would be £38,371. plus £2400 for engineering fees and clerks of works. Subtracting the estimated Unemployment Board subsidy, the cost to the borough would be £30,271, which exceeded the loan authority of £25,000 by £2271. To meet this the 10 per cent additional loan allowed to complete such a work,'without a poll would have to be raised.

In view of the rise in costs brought about by recent legislation, the council was prepared to on with the scheme under such satisfactory terms, said the Mayor, Mr. G. Mills.