A total of three tenders were received for the contract from companies with offices in Marlborough. This included a contract from the incumbent contractor, Downer, whose current five-year contract expires on 30 June this year.
Marlborough Roads Manager, Frank Porter, says the road construction industry is highly competitive and clients are able to benefit from lower prices.
“Marlborough Roads focus is to ensure that our respective clients, in this case the NZ Transport Agency and Marlborough District Council, receive value. The tender process is extremely structured and is designed to balance value and tendered prices.
“Unfortunately there are always winners and losers at the end of any tender process and understandably Downer’s management and staff will be most disappointed in losing this contract.“
Mr Porter says the Marlborough Roads office has enjoyed a long relationship with Downer and has appreciated their service over the last decade.
“Some of the Downer staff have worked most of their careers on roads in the Marlborough Sounds and worked for former agencies including the Marlborough County, and Ministry of Works. In some ways this is the end of an era.
“While I’m disappointed that our long established relationship with Downer is about to end, our office is looking forward to working with a new contractor in the area.”
Mr Porter says Marlborough ratepayers will benefit through direct savings of over $200,000 through the new contract. The three-year value of the contract is in the $13-14m range.
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