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Changes to the way Council attracts roading contractors

Thursday 21 October 2021

Tenders for seven roading contracts are out this month along with a new approach around how Council awards them.

To encourage more local businesses to bid Council has made the two roading networks in our region smaller and introduced a weighted system.

The Council Roading Maintenance Contract Procurement Plan includes breaking up the Northern and Western Networks into four separate networks called Hikurangi, Uawa, Turanga and Waipaoa.

These smaller areas will encourage smaller contractors to bid, says Council Community Lifelines Director Dave Wilson.

“This will create a more sustainable workforce in our 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.”
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, create more competition and opportunities for smaller businesses.

A weighted system to choose the right tender will give almost ten per cent to bids that include social outcomes like creating employment for our community. How much it costs will get a 30 per cent weighting, and other criteria includes relevant skills and experience, methodology and sustainability issues like environmental management.