Sole bid for Soundshell work at ‘market value’

There was no competition for the $3.45 million contract to design and build the new seating bleachers at the Caroline Bay Soundshell in Timaru with the project attracting just one tender.

The final cost, double the original budget of $1.7m that was listed through the Timaru District Council’s Long Term Plan (LTP) in June 2021, and details of what caused the jump, are included in information released to The Timaru Herald following a Local Government Official Information and Meetings Act request.

The contract to replace the tired, and in some places unsafe 65-year-old original structure, was awarded to Thompson Engineering and the rebuild remains on track for a handover back to the council on December 8.

Jason Rivett, the council’s acting group manager commercial and strategy, says the increase in funds required was through the hiatus between LTPs and the Covid-19 lockdown conditions which deferred the project going to the market.

‘‘An estimated cost was budgeted for the in the 2018 LTP of $1.7m,’’ he says.

‘‘As the project had not progressed to market due to the Covid lockdown conditions in 2020, the budget remained the same and was carried forward for the next LTP round in June 2021.

Rivett said the increase in costs occurred in the market before the request for proposals (RFP) stage went to the market.

The project had no issues with bank stability, but the structure was moved forward two metres ‘‘due to a sewer drain at the bottom of the structure which needed to be covered with extra earth during operations to prevent damage and to ensure the steps up on to the structure are not encroaching nor over the drains’’.

Rivett said rock was also found during GeoTech operations under a quarter of the structure to the south.

‘‘The rock was uncovered after demolition and major civil ground works begun, but was anticipated.

‘‘The rock needed to be removed to allow for further drainage and foundations for the structure.

‘‘There was no extra cost for the discovery of the rock or loss of time.

‘‘There was an allowance for this work and risks were highlighted before the contract began and a contingency available within the contract price to allow for this work if, as it was confirmed, was more than expected.’’

The council used the Government Electronic Tender Service (Gets) website for the project, and it took the sole bid ‘‘through the normal evaluation process via a certified evaluation panel, including a full review of the costings by an external quantity surveyor’’.

‘‘After receiving advice from the client side quantity surveyor, the bid was certified as being acceptable and at current market value for the proposed work.’’

Thompson Engineering undertook the design work as the contract was a combined design and build and although touted as a ‘‘like for like’’ replacement it has modern improvements.

‘‘The structure underneath the concrete bleachers is galvanised steel and does not have any storage capacity as per the previous structure.

‘‘There is an addition of an accessible walkway on the northern side of the structure to enable better access for those who require or prefer wheelchair access or prams etc.

‘‘We have taken the opportunity to install safety handrails where required which were not on the previous structure,’’ Rivett said.

A February 2021 report to the council, in the publicly excluded agenda until the release by the council this month, reveals the councillors considered and dismissed two other options for the work – a lightweight concrete fill solution being pumped into the original structure and permanent strengthening. Both were considered unfeasible or unsustainable.

‘‘The inclusion of a roof or shade structure is not achievable within the budget,’’ the report says.

Grassed terraces and grassed slopes were also considered but were either problematic from a maintenance point of view or not allow the same seating capacity of the structure now (about 1800 people).

The report, prepared by Donna Cross, the council’s then group manager commercial and strategy, said the council did not have a legal obligation for engagement as it was in the LTP and had been consulted on, even with an increase in budget.

There were warnings in that report that the $1.79m budget was ‘‘unlikely to be adequate’’ with a new figure of $3m-$3.2m indicated.