New Zealand company charged with post-quake clean-up sees hike in turnover.
The February earthquake has given Fletcher Construction’s revenue a multimillion-dollar boost as it expands work with the country’s Earthquake Commission (EQC).
After the first big quake, in September, Fletcher was appointed to manage repairs for about 60,000 homes with between $10,000 and $100,000 in damage, a job estimated to cost $1.8 billion and generate about $63 million in management fees for the company.
Fletcher spokesman Barry Akers said that since the February quake the company’s role had expanded and it had already completed more than 12,000 emergency repair jobs for the EQC in the past three months. The company was also named as the successful bdder ont he contract to fell the Hotel Grand Chancellor.
It had also taken over repairs in regional Canterbury, including Timaru, Ashburton and Hurunui as well as the home heating scheme, previously run by Energy Efficiency and Conservation Authority.
But the biggest earner will be the increased scope of the original repairs scheme, with Fletcher keeping all jobs allocated after the September quake even if the February quake has pushed a damaged home over the $100,000 cap.
This would mean Fletcher will manage repairs to more homes, which on average would have a high level of damage, taking a 3.5 per cent management commission on every dollar spent.
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