Printed from https://fyi.org.nz/request/2655-contingencies-attached-to-himatangi-beach-sewerage-scheme-pricing-2007-2010 on December 27, 2024 02:14

Contingencies attached to Himatangi Beach sewerage scheme pricing 2007-2010.

Jack Whitehead made this Official Information request to Manawatu District Council

The request was successful.

From: Jack Whitehead

Dear Manawatu District Council,

I wish to make a request concerning the prices and price-range provided to the Council by Blackley's Contracting and Good Earth Matters, in the period 2007-2010, for the design and construction of the Himatangi Beach community sewerage scheme. My objective is to shine a little more light on why these prices were so much lower than the final cost.

My request is: could you please provide the documentation pertinent to Council’s understanding, in the period 2007-2010, of the contingencies attached to these prices?

Yours faithfully,

Jack Whitehead

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From: MDC Public Enquiries
Manawatu District Council

Hi Jack

We have received your request.

I have forwarded this on. You will get a response in due course.

Regards, Trena

| TRENA HOKIANGA | Business Support Officer |
| Manawatu District Council | Private Bag 10001 | Feilding 4743 |
| P: 06 323 0000 | F: 06 323 0822 | www.mdc.govt.nz |

"Our people delivering great service to our community."

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From: Hamish Waugh
Manawatu District Council

Dear Mr Whitehead

 

I have received your Official Information Act request relating to
contingencies attached to the Himatangi Beach sewerage scheme pricing
2007-2010.

 

I note that the Local Government Official Information and Meetings Act
(1987) – LGOIMA is the relevant legislation and have provided the answer
below on that basis.  

 

Your specific request is as follows:

 

Could Manawatu District Council provide the documentation pertinent to
Council’s understanding, in the period 2007-2010, of the contingencies
attached to these prices?

 

Response:

 

There were no specific contingencies included in any of the prices
submitted by Blackley Construction Limited in 2007. The schedule of rates
provided does reference two specific items that could potentially be
considered contingency amounts in an engineering sense. These were as
follows:

 

               Item 21.8 misc ducting                   $5,000.00

               Item 21.1 misc pipe work              $27,160.00

 

I note that both of these dollar figures are exclusive of GST and not
specifically referenced as contingency amounts.

 

I trust this answers your question as stated in your Official Information
Act request.

 

Regards

 

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l HAMISH WAUGH l General Manager - Infrastructure l
l Manawatu District Council l  Private Bag 10001 l  Feilding 4743 l
l P: 06 323 0000 l F: 06 323 0822 l [1]www.mdc.govt.nz l

 

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"Our people delivering great service to our community."

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From: Jack Whitehead

Dear Manawatu District Council,

Thank you for the information you have given.

I take it that the documentation in which Blakelys detailed the price for the scheme contains no significant mention of contingencies. This is of course to be expected given that it was a fixed price valid for only six months.

My request however asked for documentation of the council's understanding of the contingencies for a price which, given the time scale required to get such a project underway, is effectively an estimate.

The council did flag the potential effect of an adverse foreign exchange rate change. In March 2010 the council told residents: "The capital cost of the scheme is $5.6 - 6.6 million .... The range in the capital cost estimate is due to changes in foreign exchange rates since the project was priced in 2008 [actually 2007]." What was the basis of this statement ?

Another contingency that I had in mind was the status of any discounts on the pump units. Is it true that E-One heavily discounted the price of the pump units to Blakelys ? If yes, then I would expect there to be documentation of council's understanding of the potential for loss/reduction of this discount.

Perhaps council gave little thought to contingencies; they did state to residents in January 2008: "... the costs will not exceed the max agreed price [of $5,645,000].". Lack of documentation is surely evidence of a lack of thought.

Yours faithfully,

Jack Whitehead

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From: MDC Public Enquiries
Manawatu District Council

We have received your email.

I have forwarded this to the relevant areas. You will get a response in due course.

Regards, Trena

| TRENA HOKIANGA | Business Support Officer |
| Manawatu District Council | Private Bag 10001 | Feilding 4743 |
| P: 06 323 0000 | F: 06 323 0822 | www.mdc.govt.nz |

"Our people delivering great service to our community."

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From: Hamish Waugh
Manawatu District Council

Dear Mr Whitehead

 

Thank you for your email.

 

For the purpose of completion, this email is to reconfirm that no further
information is available on contingencies around the Himatangi Beach
Sewerage Scheme 2007-2010.

 

I trust this satisfactorily completes your LGOIMA request.

 

Regards

 

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l HAMISH WAUGH l General Manager - Infrastructure l
l Manawatu District Council l  Private Bag 10001 l  Feilding 4743 l
l P: 06 323 0000 l F: 06 323 0822 l [1]www.mdc.govt.nz l

 

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"Our people delivering great service to our community."

 

 

"Our people delivering great service to our community."

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