Landscaping reduced to meet budget

Landscaping works for the Peninsula Recreation Precinct at Umina oval are likely to be reduced because quotes for the work exceeded budget.

However, buildings planned for the site would be constructed unchanged.

A staff report to Gosford Council acknowledged that all prices and combinations of prices tendered exceeded council's available budget and as a result the scope of work on landscaping was reduced.

Gosford Council has decided to enter into negotiations with an Erina construction company for the entire $2.53 million landscaping and building work carried out on the Peninsula Recreation Precinct.

Council originally called for two separate tenders for the construction process comprising of one tender for landscaping and external services and another for construction of recreation and amenities buildings.

Council staff recommended that both contracts be combined as "a satisfactory result would not be achieved by calling fresh tenders".

"The initial justification for advertising two contracts was to try and eliminate the possibility of a building company having the landscaping package quoted by a landscape company and then adding their mark up to that price," the report stated.

"However, it was also realised that there was the possibility that some companies may combine both contracts to make price savings from the economy of scales over the entire project brief.

"It was anticipated that the tenderers would offer this as an alternative subject to lodging conforming bids for the individual projects."

"After receipt of the revised schedule, further clarification was sought from contractors due to great discrepancies on singular items, due to concerns of quality, use of materials specified, compliance with Australian Standards, construction timeframes and potential variations through the contract period.

"The offer from Scape Constructions in Erina is the most advantageous to council.

"Scape Constructions have indicated their strong desire to do the entire project and thus pass on the cost savings to council by doing so, meet project timeframes, as well as show the benefits to Council of one site manager overseeing the entire project, particularly as both components of the project will be constructed side-by-side.

"Council also has a responsibility to support local jobs as per the intent of the Australian Government's Regional and Local Community Infrastructure Program

"The company has recently completed the $2.5 million upgrade works in Kibble Park as well as numerous other works for council to a high standard, on time and with no contractual disputes."

The council report also stated that it was not in council's best interest to call for fresh tenders on the basis that there would be no commercial advantage, the additional cost of calling tenders and the need to finalise the works and expend grant funding by December.

In addition, council resolved to proceed with the installation of solar energy for the building upon receipt of government rebates or any government grants available for the development of energy efficiency for public infrastructure.

Council agenda COR.61, 1 Jun 2010