Major roading contract awarded

Fulton Hogan have won the road maintenance contract and will officially take over the work in May 2020.

The awarding of the multi-million-dollar Dunedin road maintenance contract sees the contractor take over the responsibility from Downer which has held it since 2016.

The DCC General Manager Infrastructure Services Simon Drew says all interested parties went through a rigorous tender process, having to provide substantial evidence they have the skills, expertise and resources to deliver the required services to the city.

"The work to be done by the contractor is important for a major asset of the city," says Mr Drew. "We’re pleased to award the contract to a local company which will make a significant investment in machinery, equipment and staff in order to meet the demands and expectations of our community."

Fulton Hogan’s Regional Manager Grant Sime says, "Following a long and detailed tender process, we are delighted to be involved in such a collaboratively-based arrangement with the DCC for the maintenance of Dunedin roads".

"The significance is even deeper for us, given that Dunedin is the birthplace of Fulton Hogan and that, during the contract, we’ll be celebrating 90 years since Jules Fulton and Bob Hogan began our business here in Dunedin."

The contract is worth about $26m per year and includes resealing of roads and footpaths, maintaining drains, culverts and mud tanks, street cleaning, fixing potholes, maintaining road signs, grading of unsealed roads, vegetation control and responding during emergencies.

It has been awarded for 10 years to 30 April 2030, giving Fulton Hogan some assurance as it plans to make significant investment in new equipment.

Mr Drew says, "While the contract is for 10 years, the DCC retains the right to reduce the term of the contract if Fulton Hogan is not achieving its key objectives and agreed performance measures, however, we are confident they will provide an excellent service."

"During the process, we made it clear that awarding the contract was not simply about the money but that quality of service was also important."

Key factors of the contract include having support functions in place such as inspections, data capture and asset management, service delivery and what practices the company could incorporate to minimise the impact on the environment, upskill and train staff and, where applicable, involve local community groups and use local products, resources and materials.

"Fulton Hogan have provided good evidence that they understand our expectations and will deliver on them. The DCC values working with the right team and views it as a key success factor for the contract and we look forward to working with the Fulton Hogan team."

Transport Delivery Manager Josh von Pein says while Downer have lost the contract, he acknowledges the hard work they have done over the last four years.

"Downer have provided a good service for the city since 2016, including repairing roads after multiple large storms. Their service to the DCC and the city is to be commended."