Ashburton road contractor put on notice to improve

Nicole Mathewson Reporter from The Press

By local democracy reporter Jonathan Leask:

Ashburton’s roading contractor is improving, but not enough for councillors to grant a two year extension to its contract.

Instead, the contract will be put up for tender at the end of 2025, a decision that split the council and required mayor Neil Brown to use his casting vote.

“It puts the contractor on notice they need to lift the performance,” Brown said.

HEB was awarded the contract in 2020 and the five-year term ends on November 30, 2025.

A clause in the contract allows for a two-year extension if all parties agree and conditional on approval from NZ Transport Agency Waka Kotahi (NZTA).

HEB applied for the extension and it was approved by NZTA, but it failed to get a majority backing from councillors due to performance concerns.

The performance rating grade has shown a continued improvement – from a 58% score in the first year to 78% last year, but that wasn’t high enough for some.

“We are in year four and they are just achieving at 75%,” Brown said.
“It’s taking too long.

“Nowhere near 100% but we paid 100%. We haven’t been getting value for money.”

HEB has room to improve in their traffic management and efficiency, he said.

Chief executive Hamish Riach wanted the councillors to remain realistic in their expectations as a 100% performance score was “a myth” and unachievable.

Roading manager Mark Chamberlain said HEB came in fresh in 2020 and has now got a handle on the network.

“If it wasn’t improving, we wouldn’t be recommending a two-year extension.

“We are not dissatisfied with the work that HEB is doing, there are always some things in a maintenance contract that aren’t don’t quite as well as you want them to do and rework is needed.”

The contract extension was for an estimated $11m per year.

Councillor Rob Mackle said he was keen to take the gamble of going out for tender for an improved price, suggesting contractors were hungry for the work.

“I think it’s worth the risk.”

Councillor Russell Ellis urged caution on assumptions the tender will come in cheaper, as it could cost more.

Wilson put the motion for the contract to go out for tender next year, which was supported by Brown, Phill Hooper, Mackle, and Cameron.

Ellis, Tony Todd, Leen Braam, Lynette Lovett and Liz McMillan voted against the motion.

With the vote spit 5-5, mayor Brown used the casting vote to determine the contract will go out for tender as planned next year.

HEB will have the opportunity to retender.

Wilson said if they are “improving as well as we think they are, they’ll get the job”.

“We are not sacking them, we are just renegotiating what our expectations are.”