10 new jobs for 3 Waters contract

Up to 10 new jobs are likely at Fulton Hogan as a result of its successful tender for the 3 Waters contract with the Central Otago District Council.

''There will be about eight to 10 positions available at Fulton Hogan. And we will be employing local people to do those jobs,'' Alan Peacock, Fulton Hogan regional manager, confirmed this week.

Fulton Hogan, one of four firms shortlisted for the tender, will take over the CODC water services maintenance contract from current maintenance provider, Delta Utilities, on October 1.

The five-year contract, worth more than $8 million, could be extended for another four years. Any extension would be broken into two-year periods and would be subject to satisfactory contract performance.

Mr Peacock said the contract would create a new business unit within Fulton Hogan, which would be managed by ''one of the local managers who is already employed''.

''We will be employing local people to do the job. It adds nicely on to the roading contract we have with the council. It helps keep people here in long-term positions.

''The jobs are already being advertised. October 1 might seem a long way off, but it'll roll around quickly,'' Mr Peacock said.

Initial reports stated Fulton Hogan's contract with the council was worth $1.2 million a year. However, that figure referred only to the first nine months of the deal.

''The first period of the contract isn't a full year,'' council infrastructure services manager Jon Kingsford said.

''There will be a quarter of the financial year left with Delta and the remainder with Fulton Hogan ... there is also a calculation for inflation, which is standard.''

The total cost of maintenance work for the 2013-14 financial year will be $1.7 million and includes costs associated with treatment chemicals and sludge disposal.

In addition, Fulton Hogan has been awarded additional contracts with the council for water meter reading and monitoring water quality.

Mr Kingsford said because the Fulton Hogan deal presented ''some savings'', the council had also identified other maintenance projects that had been on the ''back burner''.

The cost of these extra works was about $336,000.

Delta chief executive Grady Cameron said the company was still working through the impact of the lost contract on staff.

''We are naturally disappointed that we will not continue as the 3 Waters service provider to the Central Otago District Council, as we have done proudly over the past 10 years.

''At this early stage, we are still working through the implications of that decision for our 3 Waters team in Alexandra.''


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