From left: Lyall Hedges (Downer) Mark Kinvig (CHB Council), Jerry Greer (CHB Deputy Mayor)

 Central Hawke’s Bay District Council’s awarded Downer its $100m roading maintenance contract spanning the next ten years. 

Council combined road maintenance, road reseals, and road reconstruction into one contract for the district’s 1265kms of roading network, with a stipulation that 25% of the work goes to local contractors and suppliers.

Hopefully the contract is replete with specific performance milestones and cost controls along the way. While the move seems prudent, heaps can happen across the ten years, as Gabrielle demonstrated. Probably an ‘Act of God’ clause or two in there.

“Combining this work into a single contract reduces costs to our ratepayers. The outcomes will be better because Downer can plan long-term, so they can be more efficient resulting in reduced costs,” Central Hawke’s Bay Mayor Will Foley says. 

“Council’s creating operational efficiencies and saving dollars each year by having one supplier do this work, so we’re being smarter about how we’re delivering for community. 

“One of our key criteria when procuring this work was ensuring that where we could, we kept work local. This contract will inject millions back into the local economy and increases the opportunities for people who choose to call Central Hawke’s Bay home,” Foley says. 

Downer is partnering with local contractors, which includes HES Earthmoving Ltd, BT Agriculture Ltd and Edwoods Contracting Ltd. Most of the Downer workforce for this contract also live in the district. 

Council’s Group Manager Infrastructure & Asset Management Mark Kinvig says the ten-year contract had layers of benefits for the community. 

“The end result is better investment in planning, people and machines than we see when the work is split across smaller shorter-term contracts,” Kinvig says. 

“We’re securing long-term work for our local contractors and Downer employees and putting millions of dollars back into the local economy. 

“Ultimately, this contract with Downer gives us consistent service delivery across the network,” Kinvig says. 

Downer Regional Manager – East Coast Oliver Postings says the company was thrilled to have won the contract, which will provide significant benefits for Central Hawke’s Bay. 

“We’re proud to be partnering with local contractors and investing in people and skills within the district. Using local knowledge and expertise is critical to delivering safe, reliable and efficient road maintenance services,” Postings says. 

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3 Comments

  1. Let’s hope this actually will deliver cost-savings for CHB rate payers. Unfortunately, no reference to the ‘quality of our roads’ was mentioned in the CHB press release……are we going to, once again, witness ever repeating repairs of the same stretches of road?

  2. I thought the Gov’t was forcing councils to merge? How does this fit into the restructure, and should CHBC be committing ratepayers to a 10 year contract? What will world look like in 10 years, does anyone actually know, I doubt the CHBC does ? I also believe Central Gov’t needs to take roading away from Councils and create a nationwide roading maintenance network.

  3. No reference to the option of council workers doing maintenance. The move to contractors doing routine maintenance removes long term knowledge of the infrastructure within the council and is very unlikely to be lower cost than council doing the work itself . Neoliberalism in action

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