Preferred contractor chosen for Christchurch's long-delayed metro sports facility

Wednesday, 13 February 2019

Ōtākaro is negotiating with a preferred build contractor for the long-delayed metro sports facility.

Authorities have chosen a preferred contractor for Christchurch's long-delayed metro sports facility, with hopes the contract negotiations will be wrapped up by the end of March.

Industry sources believe the preferred main works contractor for the $300 million project is Australian company CPB Contractors, which is also building the Convention Centre and Christchurch Hospital acute services building.

Councillor Jamie Gough says people need to know the opportunity cost of big contracts going to overseas company's was.

The anchor project was originally due to open at the start of 2016, but has faced repeated delays. A previous contract with Leighs Cockram Joint Venture ended over the allocation of risk and a $75m budget blowout in November 2017. The Government then reviewed the plans, resulting in a trimmed-back version of the facility.

Councillor Jamie Gough posted publicly on Facebook slating the reported decision, saying Ōtākaro had 'shafted locals by dumping a highly competitive local bid for the construction of the metro sports facility in favour of CPB'.

* Contractor replacing non-approved pipes installed in hospital

Groundworks are underway on the metro sports facility site.

'If this is true it is a disgusting move that will take millions of dollars and sustainable long term employment prospects from Christchurch and the region.'

The build is being managed by Crown rebuild company Ōtākaro, which is not commenting on who the preferred contractor is but is standing by their tender process.

Christchurch City Council, as a funding partner in the project and the future owner of the facility, also has representatives on the tender evaluation panel.

The other bidder for the contract was a group of local construction companies including Southbase Construction, which was founded in 2013 by Phillip Carter and Ben Gough, a relative of Jamie Gough.

Speaking to Stuff, Jamie Gough said people needed to know what the opportunity cost was.

'The long term cost is, in tangible terms, is millions of dollars to the local workforce, it's a substantial amount of long-term employment prospects that have now all but evaporated as a result of it.

'But at more of an intangible level, it's a kick in the guts to hard-working Christchurch citizens that want to be a part of their rebuild and have a future here.'

He said he did not know how the bids were evaluated, but thought there should be some weighting given to whether a bid was local.

There should also be some consideration to CPB's track record, Gough said.

CPB is building the long-overdue acute services building, which was originally due to be finished last July and is $40m over its original $445m budget.

They had to rip out non-approved pipes and fittings in the building which breached building consent conditions and raised warranty issues.

Southbase chief executive Quin Henderson said rebuild work was slowing down in the city and contracts like this were important to local companies so they could pay their staff.

He said there could be plenty of legitimate reasons why Southbase did not get the contract, such as their programme might be longer or cost might be higher.

But he was concerned about the long-term impact awarding the contract to an overseas company would have on the industry as millions of dollars would be heading offshore.

Henderson said about 30 local apprentices would have been taken on to do the job had they been awarded the contract.

The contractors wanted to build it for future generation because Christchurch is their home town, he said.

Henderson questioned what the ongoing affects would be; 'You build a building, you don't just walk away. So in two years time when that's it, they leave, are they going to be around to maintain it? What is the legacy that they leave behind?'

An Ōtākaro spokesman said the tender process 'has been overseen by Audit New Zealand to ensure it is thorough, transparent and meets all the relevant processes and regulations'.

He said it was not appropriate for Ōtākaro to make further comments as they were entering negotiations with the preferred contractor.

A spokesman for Greater Christchurch Regeneration Minister Megan Woods said it was an operational decision for Ōtākaro, and ministers were not involved in the procurement process.

The build-only contract is different from the previous design and build agreement with Leighs Cockram, which Ōtākaro ended over the allocation of risk and a $75m budget blowout in November 2017 – though Leighs Cockram disputed exactly why the deal fell over.

Groundwork contractor March Menard Joint Venture began installing the first of about 8000 in-ground stone columns on the site, bordered by St Asaph and Antigua streets and Moorhouse Ave, in August.

The facility was originally due to open at the start of 2016. The latest proposed completion date is late 2021.

CPB has been approached for comment.