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Gisborne roading networks split opens door for smaller contractors

Gisborne roading networks have been split into four regions to encourage more local businesses to bid on district council maintenance contracts.

Gisborne District Council's Council Roading Maintenance Contract Procurement Plan includes breaking up the northern and western networks into four separate networks — Hikurangi, Uawa, Turanga and Waipaoa.

The Hikurangi network will cover 250 kilometres of road, Uawa 435km, Turanga 196km and Waipaoa 1014km

Council lifelines director David Wilson said the smaller areas would encourage smaller contractors to bid, and create a more sustainable workforce in the region.

“We want to support our small-to-medium-sized local businesses by having more manageable contracts available for them to tender for.

“Having a skilled workforce close to home creates good outcomes for our community, economy and wider region.

“It also brings a higher level of service to our whole region.”

The council found having only two big roading networks meant the tenders were only being put in by the big national companies (called tier 1).

This change will enable tier 2 and 3 contractors to enter the market, creating more competition and opportunities for smaller businesses.

A weighted system will also be in place.

“A weighted system to choose the right tender will give almost 10 percent to bids that include social outcomes like creating employment for our community,” Mr Wilson said.

“How much it costs will get a 30 percent weighting and other criteria includes relevant skills and experience, methodology and sustainability issues like environmental management.”

Leave a Reply to Derek Barthow Cancel reply

  1. Derek Barthow says:

    At last a scheme that appears to fairly share the work around. I never saw the sense in giving all this work to the big national contractors who take the profit out of the region. We will now develop more local skills and also be better positioned to fix our railway when the bureaucracy wakes up to the tremendous economic losses we suffer without the rail.