Fulton Hogan gets roading contract

The biggest regular contract awarded by the Central Otago District Council, worth more than $36million, will be awarded to the sole tenderer.

The council roading contract will be awarded to existing contract-holder Fulton Hogan Ltd, but the process has been "robust and comprehensive", council staff say.

The current contract expires at the end of this year and Fulton Hogan should retain it, the council decided  last week.

The term of the contract is  up to five years and can be extended to nine.

The potential value for the five-year contract period is $36,739,000, making it the highest-value contract tendered by the council.

Council roading manager Murray Hasler said the roading physical works contract included maintaining and resurfacing sealed and unsealed roads, street cleaning, maintenance of drainage, bridges, footpaths and car parks, snow and ice control, maintenance and renewal of signs, guard rails and pavement markings.

"Unfortunately we only received one tender, which was not a surprise but was disappointing — other prospective tenderers had their books full," Mr Hasler told the council.

Mr Hasler said based on the contractor’s performance, the tender evaluation team was "very confident" the tender was good value and that Fulton Hogan had the necessary experience, skills, resources and financial viability to carry out the work.

"There’s been a robust and comprehensive process we’ve gone through to get to this point," he said.

Council’s infrastructure services manager Julie Muir said the contract figure was unchanged from what it had been for the past five-year contract.

Mr Hasler said the tender was "assessed with the same rigour that would be applied  if there had been a number of tenderers in competition".

A consortium led by Fulton Hogan was recently awarded a $65million seven-year contract for Central Otago and Queenstown Lakes highways maintenance.

It was a New Zealand Transport Agency contract.

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