Unsuccessful bidders raise conflict of interest concerns over award of NZ contract.
The successful contractor for the Hotel Grand Chancellor demolition had a “conflict of interest”, two unsuccessful bidders say. However, Fletcher Construction has called the accusations a “conspiracy theory”.
The firm won the contract to demolish the 26-storey earthquake-crippled Christchurch hotel last week. The work could take a year and cost more than $10 million. The tender was handled through Auckland firm RCP, which manages demolition on behalf of the Canterbury Earthquake Recovery Authority (Cera). RCP has four Fletcher staff working as demolition supervisors at its Christchurch office.
Ceres Environmental long-term recovery manager Bill Johnson said he was concerned about Fletcher staff being involved in managing the demolition jobs for Cera. “You can be involved in project management or involved in demolition. You can’t be both. It puts them in a conflict of interest if they are allowed to bid for contracts.”
Another contractor, who did not want to be named, said he shared Johnson’s concerns and had requested details of the tender process under the Official Information Act.
It comes after an industry email was widely circulated, accusing Cera of giving Fletcher preferential treatment.
Read more here, and the background to this long-running story here.
