A group of Hawke's Bay roading contractors is looking to its national body for help to head off a proposal it believes threatens the survival of small and medium enterprises (SMEs).
The Hawke's Bay branch of the New Zealand Contractors' Federation met recently to talk about a New Zealand Transport Agency plan to change the way it offers contracts. The agency is considering longer contracts, for nine years, and widening the contract areas, combining Hawke's Bay and Gisborne an example.
Branch president Quentin Welch said the possible changes were worrying many small to medium contractors.
At the meeting the group had agreed it could not see any economic benefits or improvements from longer-term contracts, but feared the proposal would inhibit competition as well as growth opportunities for contractors that missed out on contracts.
In some cases, a minimum of nine years before an opportunity to tender for a contract would threaten the survival of some smaller contractors.