Business estate contract goes out of town. By Linda Clarke

Mid Canterbury contractors have missed out on a $6 million tender to develop the Ashburton Business Estate.

The job has gone to HEB Contracting Limited, the lowest of seven tenders the Ashburton District Council was considering for the work, which includes internal roading, bunding, water and wastewater services.

Interest in the estate, on the north-eastern outskirts of Ashburton, is strong with a number of sites under contract or in negotiation.

The successful tenderer was decided at a confidential council meeting last week and Ashburton Mayor Bede O’Malley said the tenders were all competitive.

“HEB are a very good operator, however the result was also a little disappointing for council in that a consortium of local contractors missed out.

Council policy is to take the lowest conforming tender.

The contractors are expected to start on site in the next few weeks, marking a significant milestone in the project. The work should be finished in 12 months, with titles available by the end of next year.

“We expect the on-site work will stimulate further interest in the development, coinciding with recent positive commentary with respect to the country’s economic position,” Mr O’Malley said.

“This work is additional to council’s normal capital expenditure which will continue, and it is hoped these contracts will give further opportunity for local contractors”.

Council CEO Brian Lester said a local consortium, including ACL and Fulton and Hogan, was the second lowest tender.

“They had the opportunity and they put forward a good proposal. We would have been very happy to give it to them, but when you go through that tender process you are legally bound.”

HEB has bases in Christchurch and Blenheim and was responsible for work in the Pegasus Town subdivision north of Christchurch.