Nelson Mail

Constructi­on boom affects council work

- HANNAH BARTLETT

A booming constructi­on industry has forced the region’s council to delay its tendering of projects as it struggles to find contractor­s.

At a works and infrastruc­ture meeting, Nelson city councillor­s heard ‘‘fewer and fewer’’ contractor­s were tendering for council projects.

Staff had spoken with Civil Contractor­s New Zealand and had been advised contractor­s were ‘‘extremely busy’’ and in some cases wouldn’t be able to tender for work until April or May next year.

A suggestion was made to make the timeframes for the work more flexible.

‘‘Not suggesting the work takes longer than it should, it would take the same amount of time, but we’d give the contractor the ability to programme that within a time that better suits them, and that they can price more competitiv­ely,’’ council officer Shane Davies said.

If staff needed to move a project beyond a financial year they would come back to the council and seek approval, he said.

Group manager of infrastruc­ture Alec Louverdis said it was mostly civil works that were facing potential delays.

‘‘Generally it seems to be infrastruc­ture projects such as roading, stormwater, water supply and wastewater that are affected.’’

Councillor­s were also told that tenders had been coming back, in some instances, with higher prices than anticipate­d, leading council staff to negotiate or re-tender the projects.

Malcolm Edridge of Edridge Contractin­g, who is chairman of the Nelson Marlboroug­h branch of Civil Contractor­s New Zealand, said con- struction work across the top of the South Island was booming. This was due to a number of factors including demand in Kaiko¯ura following the earthquake, and civil contractin­g work on the alternativ­e SH1 route from Picton to Christchur­ch.

‘‘That’s soaked up a lot of resources and also in general, the Nelson private sector market, so that’s the subdivisio­n [work], has been very busy,’’ Edridge said.

He said 18 months ago, the council’s work was a bit late in coming out to tender, and there also wasn’t a lot of it, so when private work boomed, contractor­s grabbed it.

‘‘Now the council work is coming on behind it and the resources are tighter than what they have been.’’

The industry could handle the workload, but would need flexibilit­y from the council. Pricing was higher than 18 months ago as the market had picked up.

‘‘The councils have this deadline of the end of their financial year that they need to work to, but that doesn’t always work in for a contractor’s timeframe and by this time of year … by the time they tender it and let it, it’s very close to Christmas.’’

Tasman District Council spokespers­on Chris Choat said it was also having difficulti­es, and were taking a similar approach.

They were building flexibilit­y into contracts’ timeframes to ensure contractor­s had the resources to complete projects to a high standard.

Council staff and Edridge agreed the pinch on labour and resources was a temporary situation, with Edridge referring to it as a ‘‘blip’’.

 ?? MARTIN DE RUYTER/NELSON MAIL ?? A memorial to Thomas Armit has been set up at the scene of Monday’s fatal crash.
MARTIN DE RUYTER/NELSON MAIL A memorial to Thomas Armit has been set up at the scene of Monday’s fatal crash.

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