Sewage Works Job To Be Completed By Board

Press, Volume C, Issue 29469, 22 March 1961, Page 14

Sewage Works Job To Be Completed By Board

Contract Cultivation, Ltd., the Dunedin firm which has been constructing the oxidization ponds for the Christchurch Drainage Board’s new sewage treatment station at Bromley has abandoned the contract. The board agreed last evening to complete the work itself. The receiver for the contracting company, Mr J. A. Valentine, of Dunedin, advised the board by letter last evening that in his opinion the company was forced to cease operations and withdraw from the contract because it had insufficient resources to complete on a basis which was resulting in substantial losses. He had, therefore, instructed that the company’s operations on the contract should cease immediately.

The sewage treatment engineer (Mr D. L. Steven) reported that the contractors had moved oft the site this week, taking all machinery other than that on which the board had made advances. When the board, on the motion of the chairman (Mr F. R. Price), determined the contract, Mr R. C. Neville, chairman of the construction committee, proposed that the board should carry on the contract itself and offer the contractors’ staff at Bromley continuing employment at the same wages and accommodation as they receive at present. Plant for Board It would be possible for the board to continue the work using the plant and equipment which would revert to the board, Mr Neville said. For the additional plant required, he proposed that the board should make an offer, based on an independent valuation to be received for the plant used on the site. Sub-contractors who were employed by the contractor for such work as fencing, metalling and sealing of the roads, outside the actual earthmoving, should be offered the chance to continue. The board accepted Mr Neville’s suggestions. The board had approved the contractor and the bondsmen subject to the approval of the board’s solicitor, said Mr M. R. Carter. “Somewhere along the line we got

into a little bit of trouble, and we now find that the bondsmen are fully-owned subsidiary companies of the main contracting company. Had careful investigation been made at the time we might not be in this position now.” When the contract was let, a reputable bank was the bondsmen, said Mr Price. Later there was an application for a change of bondsmen. Inquiries were made and reports at the time gave no indications that the companies were connected and gave favourable comments on their financial standing. "I don’t think the board was in any way remiss,” he added. Investigation Mr Carter then moved that a special committee be set up to investigate the question of bondsmen and the checking of the financial standing of contractors and to report to the board, "with the idea of asking Parliament to legislate so that this position will not occur in the future.” Very complex legislation would be needed, said Mr G. A. G. Connal. “It is a matter of being wise after the event.” The board had been influenced by “a very satisfactory price,” he said, and was prepared to take “a certain amount of risk” to ensure that the ratepayers received the benefit. About £lm was involved in the whole job and had the board -not accepted the offer the rate-

payers would have been involved in another £50,000. He was satisfied that with the board taking over, the work would be completed with the same saving, Mr Connal added. The board adopted Mr Carter’s motion. Contract Cultivation, Ltd., began construction of the oxidation ponds in January of last year, and the completion date for the contract was July 31, of this year. Reporting on the progress of the contract for building the purification works—the completion date, February 24, has been passed—Mr Steven said the number of men on the job in February had been consistently low, with labourers being particularly scarce.