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Council Maintains Local Expertise with new Roading Contract

COUNCIL MAINTAINS LOCAL EXPERTISE WITH NEW ROADING CONTRACT

14 August, 2014

Ruapehu District Council (RDC) has committed to retaining local expertise in deciding on its new vendors for road maintenance services.

For the past six months Council’s land transport team have been involved in an open market tender to decide who would provide Ruapehu’s local road maintenance services worth $10 million per annum.

At yesterday’s Council meeting RDC’s Tender Committee awarded the new term maintenance contracts to the successful tenderers.

Roading is Council’s biggest expenditure item with thirty two cents of every rate dollar being spent on land transport.

RDC Manager Land Transport & Economic Development, Warren Furner, said that the tender process was exhaustive and Council wanted to thank all those who took part.

“The land transport contracts are now divided across six separate suppliers comprising; Downer, Jilesens, JJ Walters, Emmetts, Mulch and Mow and Agspec rather than one central supplier as it has been for some time.”

“It is anticipated that the new contracts will come into effect from 1st October,” he said.

“For past 11 years all of Ruapehu’s land transport services have been supplied under the umbrella of Inframax Construction Ltd.”

“Over that time Inframax have made a significant contribution to Ruapehu and Council thanks them for their hard work over this period.”

Mr Furner noted that the land transport activity is seen by many as Council’s most critical activity in ensuring the viability and sustainability of Ruapehu’s economy and its communities.

“Council deliberately unbundled the existing contract to make it more accessible for local contractors,” he said.

“We have an obligation to find the most cost effective and beneficial solution to meet Ruapehu’s future land transport needs.”

“Council believes that the six successful tenderers are best placed to meet these needs and provide the level of service demanded by Ruapehu communities for their land transport network.”

“This new contract model will provide a lot more flexibility around the scope of work we can undertake while reducing costs.”

“With the recent Funding Assistance Rate review dropping the subsidy level Ruapehu gets from government to assist help maintain our land transport network the need for cost effective and efficient services is more critical than ever.”

Mr Furner added that the six suppliers will be responsible for nine separate contracts covering all aspects of Ruapehu’s land transport network.

“Council is very pleased that the ‘lions share’ of the new contract was awarded to local contractors,” he said.

“This means that local rates will be spent locally.”

“All the successful contractors are known to Council with a couple of them having been already providing services under the Inframax umbrella”

Mr Furner said that Council was looking forward to working with its new land transport contractors and delivering a sustainable land transport network that will support Ruapehu’s economic development and aspirations.

Peter Till: Chief Executive

ENDS

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