The Star: July 09, 2020
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Thursday <strong>July</strong> 9 <strong>2020</strong> <strong>The</strong> <strong>Star</strong><br />
• By Louis Day<br />
DISRUPTION from the<br />
Covid-19 pandemic is resulting<br />
in contractors applying<br />
for millions of dollars in<br />
compensation from the city<br />
council.<br />
About $6 million has already<br />
been applied for by contractors<br />
to account for the disruption<br />
from alert level 4 restrictions.<br />
<strong>The</strong> city council has paid out<br />
$477,361 in claims so far. A city<br />
council spokesman said it was<br />
looking at ways to manage these<br />
claims so they have no impact<br />
on rates.<br />
Depending on the agreements<br />
made, contractors can claim<br />
money from the party they have<br />
been hired by in compensation<br />
for time extension on a project.<br />
City councillor<br />
Phil Mauger<br />
and owner<br />
of Maugers<br />
Contracting Ltd<br />
thought it was<br />
a “low blow”<br />
for contractors<br />
to be making<br />
claims from the city council<br />
under the circumstances of the<br />
pandemic.<br />
“I had the opportunity to put<br />
some [claims] in and I said:<br />
‘Nah,’ because I did not think it<br />
was cricket,” he said.<br />
“Say the council said you<br />
can’t work on a project for two<br />
months and there was no Covid,<br />
fair enough, because the<br />
council is causing you to<br />
lose money. But in this<br />
situation, you can’t go<br />
anywhere else because the<br />
whole country was locked<br />
down.”<br />
Isaac Construction is one<br />
Latest Canterbury news at starnews.co.nz<br />
Millions sought for delay<br />
Phil Mauger<br />
of the companies to have<br />
made a claim, applying for<br />
about $2 million in relation<br />
to disruption to roading<br />
and major projects.<br />
Said Isaac Construction chief<br />
executive Jeremy Dixon: “<strong>The</strong>re<br />
is a clause in it [contract] that allows<br />
us to claim for some of the<br />
cost we have incurred as a result<br />
of Covid-19.”<br />
Deputy Mayor and<br />
chairman of the council’s<br />
finance and performance<br />
committee<br />
Andrew Turner hoped<br />
the payment of any<br />
claims would not lead<br />
to a rates increase.<br />
“I am confident the<br />
council will deal with<br />
anything that needs to<br />
be dealt with in a sensible,<br />
efficient and professional<br />
manner,” he said.<br />
<strong>The</strong>se claims only add to<br />
the financial pressures the city<br />
Jeremy<br />
Dixon<br />
REPAYMENT:<br />
Isaac<br />
Construction<br />
has made a<br />
claim of about<br />
$2 million<br />
to the city<br />
council for<br />
compensation<br />
from the<br />
disruption of<br />
the Covid-19<br />
pandemic<br />
to roading<br />
and major<br />
projects it was<br />
contracted.<br />
council is already facing after<br />
suffering a $99 million revenue<br />
shortfall as a result of the pandemic.<br />
It is currently processing submissions<br />
to its draft Annual Plan<br />
which proposes an average rates<br />
increase of 3.5 per cent after<br />
trimming back on its budget for<br />
the next 12 months.<br />
Leaving the lost income and<br />
additional costs arising from the<br />
pandemic unaddressed would<br />
have driven a rates increase of<br />
more than 21 per cent for the<br />
current financial year.<br />
<strong>The</strong> city council will finalise its<br />
Annual Plan by the end of this<br />
month.<br />
NEWS 5<br />
Town hall to<br />
open for daily<br />
access soon<br />
THE TOWN hall will open its<br />
doors for daily public access next<br />
month.<br />
<strong>The</strong> hall, which suffered significant<br />
damage from the February<br />
22, 2011, earthquakes, reopened<br />
for events in February last year<br />
after a $167 million restoration.<br />
Yesterday, Vbase, the company<br />
managing the hall, announced it<br />
would now be open for daily public<br />
access from August 4 onwards.<br />
Said chief executive Caroline<br />
Harvie-Teare: “Our community<br />
has so many special memories<br />
over almost 50 years at the town<br />
hall and there is great pride in the<br />
venue. Opening the doors for daily<br />
access is both an opportunity<br />
for the community to reconnect<br />
with its venue but also for visitors<br />
to Christchurch to experience one<br />
of our most iconic assets.”<br />
A ‘Friends of Christchurch<br />
Town Hall’ volunteer programme<br />
is being established to welcome<br />
and provide information to visitors<br />
to the venue. Applications for<br />
the programme are now open.<br />
While the $167 million<br />
restoration of the hall brought<br />
it to 100 per cent of the New<br />
Building Standard, an Audit New<br />
Zealand report found the project<br />
was “beset with some significant<br />
issues” after it was originally<br />
budgeted to cost $127 million.<br />
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