Nelson Mail

Centre probe finds no conflict

- Warren Gamble warren.gamble@stuff.co.nz

A consultant’s move from a company that assessed tenders for a troubled Stoke community centre to a building firm days after it was named as preferred centre contractor was not a conflict of interest, an audit found.

The 2016 audit was spurred by one of the unsuccessf­ul tenderers for the $7.1 million Greenmeado­ws project, which suggested the employee’s move may have been a conflict of interest.

The independen­t audit by Asset Management Strategic Advice and Mentoring (AMSAAM), released by the Nelson City Council this week, set out the time frame for the employee’s job switch.

The unnamed employee was a director for Onus Constructi­on Management. Another Onus director helped to evaluate ‘‘nonprice attributes’’ of the tenders for the project in June 2016, a process that led to Auckland constructi­on firm Watts & Hughes being identified as preferred contractor on June 27.

On June 23, the director at the centre of the conflict of interest claim responded to a job advertisem­ent for ‘‘an undisclose­d company’’. On June 30, he told the other Onus director he was retiring from the firm, and the next day he ‘‘discovers the advertisem­ent he has responded to was placed by Watts & Hughes and he eventually accepts the position on August 5’’.

The Onus director who evaluated the tenders told the council on September 15 that his fellow director had gone to Watts & Hughes.

After one of the unsuccessf­ul tenderers raised the potential conflict of interest, the tender was put on hold pending the audit.

The audit, carried out by David Fraser from AMSAAM, said it was not unusual in New Zealand, particular­ly in provincial areas, for those within the consulting and contractin­g industry to move between firms.

‘‘The moving of a staff member from a consulting firm involved in an evaluation process to a constructi­on firm that was part of that evaluation does not automatica­lly mean there has been a conflict of interest,’’ Fraser said.

‘‘The tender evaluation process has been carried out in keeping with the general tender evaluation requiremen­ts, and there is no indication of a conflict of interest,’’ the audit concluded. It said Watts & Hughes had the highest non-price attributes and the lowest tendered price.

Watts & Hughes has been in the spotlight over the quality of the Greenmeado­ws project, and has admitted there were ‘‘quality issues’’.

On Monday the council released the terms for an independen­t review of the centre’s constructi­on. The reviewer will be able to make recommenda­tions for any remedial work.

The reviewer will also work with the architect and the main contractor to help find improvemen­ts or solutions to any potential problems with ongoing work. They will assess the quality of the constructi­on, which must be of a standard to last well for 20 to 30 years.

 ?? MARTIN DE RUYTER/ STUFF ?? An independen­t review of the troubled Greenmeado­ws community centre’s constructi­on will be able to make recommenda­tions for any remedial work.
MARTIN DE RUYTER/ STUFF An independen­t review of the troubled Greenmeado­ws community centre’s constructi­on will be able to make recommenda­tions for any remedial work.
 ??  ??

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