FIRST BIG HOUSING CONTRACT

Evening Star, Issue 22559, 29 January 1937, Page 8

FIRST BIG HOUSING CONTRACT

TENDERS LET FDR 465 FLETCHER COMPANY GETS JOINERY SUPPLY [SPECIAL TO THE ‘ STAR.’] WELLINGTON, January 29. The Prime Minister announces the result of the first series of tenders for the construction of Government houses, of which 375 will be at Lower Hutt and 90 at Miramar; also the contractor who was successful in the tender for the Wellington Government joinery factory, who will supply the joinery. The successful tenderer for the supply of joinery was the Fletcher Construction Company Ltd., whose tender, said Mr Savage, would show a saving on the nearest unsuccessful tender of about £5 a house. The successful contractor has to pay rent of £3,000 per annum, which includes interest, plus depreciation such as wonld liquidate the cost of a Government factory in a few years; and in addition has to pay ordinary income tax on profit. The contract also provided for the maintenance in good working order of the machinery installed by the Government, and for the right to secure a rebate in the price of joinery should, the contractors’ profits exceed a certain figure. For 19 separate housing contracts, the total number of tenders received was 35. The successful tenderers for the erection of the various houses were the Fletcher Construction Company Ltd. and Higgins and Arcus. Under the schedule rate system upon which the houses are being erected, and having regard to the fact that the Department of Housing Construction may adjust the cost of any items in the schedules, the supplies of which it can secure for the contractors at a low figure, and also owing to the fact that the schedule rate contract gives the Government the right to make additions or reductions to the quantities of materials and the work involved in the contracts, it will he some time before the exact figure of the contracts can be stated. There is, however, no doubt that the rents to be charged for the houses will compare more favourably with rentals being asked to-day. A NEW STANDARD. “ I am convinced,” coninued the Prime Minister, “ that the houses built will set a new standard for working class housing in New Zealand. We are building for the nation, and to play into the hands of the jerry builder would be short-sighted. Indeed, a house soundly constructed and possessed of all necessary conveniences will bo an asset of which the State can ho well proud for a long period ahead. The term ‘ Government housing ’ has tended to become a term descriptive of a lower grade of housing. The term ‘ Government housing ’ in future should become descriptive of a higher grade. “ An effort will be made within the next month or two to also incorporate in each group of houses a few that could be let to childless couples, both old and young. Houses containing all conveniences, at the rate within the reach of all. “The letting of the contracts will be followed shortly by the letting of a smaller contract at Jobnsonville, in which the builders will be allowed to tender for any of a small group of houses, from one house upward.” If any single builder, said the Prime Minister, could fill in one of the schedules for the construction of a house at a rate-that showed a substantial saving on any of the schedules deposited up to the present by one of the successful contractors, a section would bo found for that builder, provided he entered into such arrangements as would ensure that he would complete the contract for the total price quoted. The policy of. the Government is to let further contracts as necessary, and it, is anticipated that the work so provided will ensure continuous employment for building labour in Wellington for a long time ahead.