Report backs council footpath management

An independent review of Auckland City Council's footpath contract management has found council staff made reasonable commercial decisions to obtain good value for ratepayers.

The review, by Waren Warfield of construction industry management consultancy RCP, indicates alleged overpayments as part of footpath contracts amounted to 0.13 per cent of the overall contract value of $104 million, or $140,000 and that the council will not be pursuing a rebate.

However, there were several other items of work which the contractor had not claimed for, including traffic management, storage of materials, non typical footpaths and downtime due to utility company works. This translates to direct savings of at least $210,000.

A $2 million discount was also negotiated with the contractor on the basis of estimated increased expenditure. That increased level of expenditure did not eventuate, but the discount remained, despite it not being a contract commitment.

The review has also been welcomed by Sam Filmore, a director of JFC Ltd, who says the company is proud of its 40-year relationship with the council and its culture of customer service to ratepayers.