The Rintoul Group had completed a section of the Twin Coast Cycle Trail and was tendering for four more sections. Photo / NZME
The Rintoul Group had completed a section of the Twin Coast Cycle Trail and was tendering for four more sections. Photo / NZME
A company that a High Court judge says was wrongfully excluded from a cycleway tender process wants $500,000-plus in compensation from the Far North District Council.
Kaikohe-based Rintoul Group had alleged it was "totally bizarre" that the council had excluded it from a tender to build four sections ofthe Twin Coast Cycle Trail.
After a hearing in the High Court at Auckland last month, Justice Mathew Downs ruled that the council was wrong to exclude the company.
In March 2016, Rintoul Group tendered with four other companies to complete four sections of the cycle trail from Hokianga Harbour to Opua. The sections were jointly funded by the FNDC and central government.
In the tender documents, Rintoul Group referenced the Kawakawa to Taumarere cycle trail section as a successful project it had completed for the FNDC in February 2016.
The company tendered to build each of the four sections.
In May 2016, two council representatives met with Rintoul Group representatives to discuss the tenders.
They discussed the Rintoul Group's low tenders - $630,000 less than competitors for the four sections - and whether the company could complete four sections simultaneously.
"The overarching concern was that quality may be sacrificed for price," Justice Downs said.
After the meeting, Mr Rintoul was confident he would win the tender. Justice Downs noted he was not satisfied that the council representatives had said anything to imply that.
The evaluation team that considered the Rintoul Group tender included Andrew Young, the FNDC's construction supervisor for the cycle trail project.
Mr Young had managed five cycle trail sections previously completed by Rintoul Group, and Mr Rintoul had nominated Mr Young as a referee in the Rintoul Group's tender for the four sections.
Justice Downs noted that during an earlier tender process, it had been considered whether it was appropriate for Mr Young to act as a referee for Mr Rintoul.
"It was concluded no conflict arose.''
Another evaluation team member, Aimee Page, raised alleged inconsistencies in information supplied by Mr Rintoul about his company's work on the Kawakawa to Taumarere cycle trail section. She said the section had not been finished and was over budget.
FNDC then excluded Rintoul Group's tender from the process and "in-house counsel" wrote to Mr Rintoul in July stating that he had made false representations in his tender, and all four tenders - one for each cycle section - were excluded.
On July 7, the council sent Rintoul Group an invoice for $61,586 for the Kawakawa to Taumarere cycle trail project for a "deduction of various orders previously paid due to failure to provide supporting evidence".
The same day Mr Rintoul threatened a judicial review via his solicitor. However, the four contracts had been let and the FNDC replied there was nothing to injunct.
Mr RIntoul then commenced the court action that led to Justice Downs' decision this week.
In his judgment, Justice Downs said it was common ground there was no provision by which FNDC could exclude Rintoul Group from the tender process.
The High Court has ruled the Far North District Council was wrong to exclude Ken Rintoul's company Rintoul Group's tender for the cycle trail.
PHOTO/SUPPLIED
FNDC had argued in court it thought tender rules allowed the council to exclude any tender before they are formally considered.
Justice Downs noted FNDC did not call those who made the decision to exclude Rintoul Group's tender to testify at the High Court hearing.
He rejected FNDC's argument the tender-evaluation process was largely completed when Rintoul Group was informed about its exclusion and that the company "lost" the tenders rather than being disqualified.
Had Rintoul Group not been excluded, Justice Downs said, it stood a 50 per cent chance of winning the tender.
Company director Ken Rintoul told the Northern Advocate his business had never had legal problems in its 25 years of working with the FNDC. He said Rintoul Group was seeking more than $500,000 in loss of income from FNDC as part of the same proceeding.
