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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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