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Home / Hawkes Bay Today

Dannevirke: Council decision angers contractors

By Christine McKay
Hawkes Bay Today·
17 Dec, 2014 12:38 AM3 mins to read

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Kathy Dever-Tod, manager of the Tararua Council's asset group.

Kathy Dever-Tod, manager of the Tararua Council's asset group.

The Tararua District Council's decisions regarding the letting go of some tenders has angered local contractors.

However the council's procurement policy doesn't need changing, rather it's council staff who should be building better relationships with local contractors, councillor David Roberts insists.

One local contractor has contacted the Dannevirke News expressing anger with the council's final decisions and the recent tenders it has put out.

"It appears we have once again missed an opportunity to improve Dannevirke by bringing more local employment to the region," said the contractor, who didn't wish to be named for fear of jeopardising his business.

"With Fulton Hogan getting all the contracts in Dannevirke and the maintenance of the sports grounds for the Tararua, we have lost out on numerous opportunities.

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"A local contractor is always going to take exceptional pride in their work and work in closely with the town for specific events. The local contractor is also going to employ other local people as required, once again creating an opportunity for somebody living in the Tararua.

"And, of course, the local contractor is also going to spend the dollars in the Tararua, which in turn will enhance the turnover of other local business people."

Kathy Dever-Tod, manager of the council's asset group, has previously told the Dannevirke News that while Fulton Hogan is an outside company it is setting up a yard here and employing local staff.

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"For the Dannevirke town there were only three tenderers and a massive difference in the quotes between those three," she said.

Ms Dever-Tod said to help those putting in tenders there were a set of criteria weighted in favour of local companies. Councillor Roberts said it was not his council's procurement policy that was at fault.

At last week's council meeting he urged staff to develop relationships with locals and to have the same passion for the district as marketer and communications manager Lianne Simpkin.

However, the contractor who contacted the Dannevirke News said in regard to the sports grounds contract he was told the difference between Fulton Hogan's tender price and the closed local tender was $10,000.

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"I was also told Fulton Hogan were rung to see if they really could do the contract for the price tendered," he said.

"Why was the local contractor closest in price not given the opportunity to adjust their tender slightly? Surely this could have been negotiable, to give a local contractor another chance if Fulton Hogan were given the opportunity to withdraw if an error had been made?" he said.

"The subcommittee created from within council to promote Dannevirke must be feeling the frustration when this happens to Dannevirke and the rest of the Tararua. We are a small rural town in a large geographical area, which needs all the support possible to survive and maintain our rural way of living and keeping a profitable, functioning town. After numerous conversations with many people about this, it appears a lot of the locals are very dissatisfied with our council's decision.

"I sincerely hope the specifications [as outlined by the council in the tender documents] are met and constantly monitored by councillors. If those specifications aren't met, I hope councillors will document this and react appropriately."

The contractor said he wanted to make it clear that he wasn't closest in tender to Fulton Hogan.

"I would have been happy to bow down to another local contractor because they had the better price," he said. "It's about keeping these business opportunities in the Tararua."

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