EQC to handle repairs to 50,000 Canterbury homes

The Earthquake Commission (EQC) expects its project management office will have to handle the repair of 50,000 properties moderately or seriously damaged in the Canterbury earthquake.

EQC chief executive Ian Simpson said the scale of the task, created by the 7.1 magnitude earthquake on September 4, was unprecedented in New Zealand.

This week EQC launched a worldwide search for a company to oversee repairs to the thousands of damaged homes.

It was seeking tenders from major companies in New Zealand and abroad to establish a project management team to oversee repairs up to $100,000.

Once the team was in place, the EQC would introduce streamlined processes to simplify about 90 per cent of the 76,000 claims filed to date.

The company, from New Zealand or offshore, would ensure the work undertaken would be "timely, equitable and of a high standard," Mr Simpson said.

The role of the project management office will include handling every aspect of repairs for householders, ensuring a design and build approach was taken, providing quality assurance, and development of a needs-based priority system.

The office would also sub-contract and manage the many contractors required to carry out the building design, construction, repair and quantity surveying involved.

Building repairs, from approximately $10,000 up to $100,000 and involving structural restoration or a moderate level of damage, would be managed through the office. Claims above the EQC's cap of $100,000 plus GST would be handled by commercial insurers in accordance with their policies.

A fast-track process had been set up to pay out on claims for minor damage to property and contents and there was also a streamlined process for claims that involved only damage to chimneys.

Mr Simpson said EQC had now received more than 80,000 claims, with about 7000 already assessed - mostly in the worst-affected areas.

There were five EQC field offices operating in Canterbury and 350 staff on the ground, with the number growing.

- NZPA