A legal bid to recoup at least $5 million from Beca - the international consultancy that grossly underestimated the cost of the Homebush sewerage upgrade - is now definite.
Masterton Mayor Garry Daniell confirmed yesterday that his council is seeking legal redress for what it says was "inaccurate advice" from Beca
that resulted in a cost blowout that - in a worst case scenario - could add $6.6 million to the largest-ever council undertaking.
The decision to press ahead with legal moves to recover the money comes only days after Masterton district councillors voted to explore "liability issues" with Beca, and after taking advice from a Queen's Counsel.
The announcement is expected to meet with the approval of most ratepayers after vocal outbreaks of astonishment over the blowout - described by Mr Daniell as news that left the district "in a state of disbelief and anger".
"Legal advice has confirmed the council could have expected to have had a greater certainty of costs and processes from a company of Beca's standing, which Beca's management has admitted," he said.
The claim of an admission by Beca is based on an apology made to councillors at an emergency meeting late last month.
Beca has offered an olive branch of sorts to the council by agreeing to write off a portion of its fees for the scheme, thought to be about $500,000.
Mr Daniell said that in the meantime councillors were anxious for work to press on during the summer months so that pond construction at Homebush is not compromised.
As part of the overall shake-up brought about through the shock of the cost overrun, councillors have agreed to a value management review of the scheme, involving council management, Beca and the construction contractors Hoppers.
This process will include an analysis of the tenders for the structural, mechanical and electrical components of the scheme.
The council will also commission a brief for yet another independent review of the design, to make sure what it is trying to achieve meets resource consent conditions.
Mr Daniell said ratepayers had been calling for the district council to pursue legal action against Beca since news of the bombshell cost blowout. "We delayed making a decision until we were sure of our ground."
