Footpath contractor in front in paving dispute

The Auckland City Council and Metrowater owe John Fillmore Contractors $406,093 in the latest twist to the management of two big footpath contracts.

An independent review has found the two public bodies owe the contractor more for unpaid work than he owes the council for payments on some overlapping footpath work.

The review said owner Mr Fillmore never set out to be paid twice for some footpath work, but the terms of the contract meant he owed a rebate of $174,502.

Other mitigating factors made his offer of a rebate of $86,815 to the council a reasonable commercial settlement, the review said.

In June, the Herald revealed that the council had paid twice for some footpath work, leading to two reviews into the matter.

As part of the latest review, Mr Fillmore made counterclaims for storing kerbstones and delays caused by water pipes. After some toing and froing, the review recommended the contractor be paid $96,578 for the kerbstones and $396,330 for delays and costs associated with shallow water pipes.

Last night, Mayor John Banks urged Mr Fillmore to look at waiving any payment in the context of more than $100 million of footpath work he had been awarded.

Mr Fillmore rejected the suggestion, saying the issue had cost a lot of money and slurred the name of his company.

"My main concern is that we were seen to be double-dipping and that really upset me. We weren't double-charging."

Engineer Waren Warfield, who carried out the review with quantity surveyors RLB, said there was no evidence of Mr Fillmore trying to rort the system or double-dip.

Mr Warfield said the engineer to the contract, Euan Ross, had directed the contractor to store kerbstones at its yard after the council found it had limited access to its own yard. Even though it was a verbal instruction and nothing was put in writing, it amounted to a binding contract variation, he said.

Mr Ross was also involved in another contract variation that allowed the contractor to be paid for delays and costs caused by shallow water pipes.

The contract put the onus of dealing with underground services, such as water pipes, on to the contractor unless delays "could not be reasonably foreseen by an experienced contractor".

Mr Ross, who played a key role in the two costly variations, has no formal engineering qualifications. He lists himself in the electoral roll as an antique dealer.

Council chief executive David Rankin, Mr Warfield and a senior transport manager, Tim Lott, defended the decision to employ Mr Ross as the "engineer to the contract" for the past three years. He has been with the council for 11 years and has extensive contract and operational management experience.

Mr Rankin said that when all the process and legalities were stripped away, it was the council and its water company, Metrowater, that owed money to Mr Fillmore.

It has been recommended that Metrowater pay half the water pipe costs.

The Warfield review recommended better processes and record-keeping, and additional on-site inspections.

Mr Banks said there had been gaps in accountability that needed to be filled.

WHO OWES WHAT
* Money overpaid to JFC for footpath work $86,815
* Money owed to JFC for storing kerbstones and utility delays $492,908
* Net owed to JFC $406,093