Resurfacing contract let

Southland District Council has let its single biggest annual roading contract for the 2009/2010 year. Southland District Council asset manager roading Russell Hawkes said the tender from Fulton Hogan Ltd of $4,943,000 excluding GST was accepted by Council's activities performance audit committee.

The contract covers the 2009/10 resurfacing requirements for the three maintenance areas operated by Council.  The three tenders closed on the same day with two of the tenderers providing Council with a single option alternative that would provide overall benefit to the Council.

Three tenders were received, with Fulton Hogan providing an alternative tender for all three areas. 145.1km of urban and rural roads will be resurfaced, ie, resealed and second coat sealed, under the contract, Mr Hawkes said.

"However, an additional 22.4km of road has been identified as being a priority for inclusion in this program, depending on the bitumen prices and the New Zealand dollar," he said.

The average cost per metre for this construction season based on the tender prices received will be $4.40 plus GST

"Fulton Hogan's track record of delivery gives us confidence that the solutions they come up with will provide good long term value for money and will be delivered," Mr Hawkes said.