The Downer-led group which won the seven-year maintenance contract for South Canterbury’s state highway network was the lowest of four bids according to a recent report in the Timaru Herald.
Downer formed a partnership with engineering services provider GHD, surfacing supplier Isaac, Paul Smith Earthmoving and vegetation control operator GSL to deliver the new contract.
But the New Zealand Transport Agency says all four bidders “met the required standard”.
NZTA spokesman Pete Connors said the four bidding groups were Downer, a Fulton Hogan-led consortium, a Higgins Contractors-led group and Invercargill-based South Roads – with prices ranging from $69.9 million (Downer) to $81.9m. He would not confirm which group offered the highest price.
“Price is one factor when assessing a bid, but it’s only one of many. Quality is assessed before opening the price envelopes,” he says.
Connors said the new contract would come into effect in April. The contract could be extended to a maximum of nine years. However, NZTA could also re-tender the contract after three years if it felt targets were not being met.
Traditionally, NZTA has offered maintenance contracts ranging from one to three years.
Connors says unexpected work – such as repairing damage caused by extraordinary weather events or earthquakes – could be regarded as separate projects.
“We have our key measures, but you can’t plan for all weather. This is a flexible approach from us,” he says.
Connors also says bridge repairs, bridge construction, new roads and road alignments and safety work would also go out for tender separately.
