Award of contract labelled unfair

Press, 27 April 1989, Page 7

Award of contract labelled unfair

By

MICHAEL RENTOUL

A decision by the Christchurch Metropolitan Refuse Disposal Committee not to call tenders for a $lOO,OOO-a-month contract awarded to the same firm for five years, has been criticised as unfair by two rival contracting firms. i At a committee meeting yesterday, Kevin Blair Contractors was effectively awarded a 12month extension to its contract for the supply and operation of equipment at the landfill site on the corner of Prestons Road and Burwood Road. This was in spite of a claim by the managing director of Francis Construction Services, Mr Stan Francis, that 15 per cent of the contract, or $200,000 a year, could be saved. He made the claim in conjunction with the managing director of Laing Contractors, Mr Duncan Laing, although both men said they represented

themselves at the meeting. Mr Francis said he opposed the original recommendation that the contract, which will expire on June 30, should be renewed for longer than 12 months. This was to allow Kevin Blair a degree of security so it could proceed wth investment decisions. The contract is with the Waimairi District Council, acting on behalf of the refuse disposal committee. . Mr Francis was also, unhappy about the final decision to call tenders early next year. He said that as the economic environment in 1984. was not as harsh as now, contractors should be given the opportunity to bid for scarce work and that of necessity, they had become more efficient. He said he had been told by the manager of metropolitan refuse, Mr Ray Urquart, that the contract would be retendered

this year. The committee chairman, Mr Ron Wright, emphasised Kevin Blair’s good record and the necessity of adhering to stringent Planning Tribunal guidelines at the site. He said it was a matter of responsibility that the committee should carry forward the contract now, as its successor would have plenty of matters on its plate after local government amalgamation. Mr Laing told "The Press” it was because of pending amalgamation that the committee had elected to penalise the ratepayer. “The changes are supposed to make the system more efficient ... but carrying forward contracts is not what Mr Elwood (the chairman of the Local Government Commission) had in mind,” he said.