Hartner's phoenix struggling to rise from ashes

Hartner Construction staff are setting up a new company, trying to get work for which the failed firm was tendering.

The New Zealand Army was surprised to receive a request from Hartner Construction's receiver for tender documents on a top-secret $9 million building job at the Papakura military camp.

Captain Tracy Green, project officer for the director of property management at Linton Military Camp, said she received a request from John Waller of PricewaterhouseCoopers for the paperwork on the job about a week after Hartner Construction went into voluntary receivership on February 1, with debts estimated at more than $28 million.

Mr Waller confirmed he had made contact with Captain Green over the Papakura job and that some of the staff of Hartner Construction - led by general manager Peter Kay - were setting up a new company.

But Mr Kay denied that any new company was being established.

He said he had no knowledge of the Papakura job, and he had heard nothing after Hartner had pre-qualified for the job.

However, Mr Waller believes that Hartner staff should be encouraged to set up a new company.

He said he needed their cooperation in dealing with the arbitration and litigation over existing jobs.

Captain Green said that because the firm had gone into receivership owing subcontractors millions of dollars, the Army had decided against supplying the documents.

By late last year, Hartner Construction was on the short-list of builders for stage two of the building work at Papakura, valued at $5.5 million.

It made its initial bid for the work well before it went under.

The $9 million job involves refurbishing and new building work at Grove Rd in Papakura. It is also understood to include building work for premises for the SAS, but the Army will not comment on this.

"They were on the successful registration list and were going to get a set of tender documents, but they are not going to since they have gone into receivership," Captain Green said.

And an advertisement published in the tenders column of the Herald by Hartner Construction on Monday calling for subbies to bid on the $300 million 277 shopping mall project in Newmarket was the last straw for bitter Hartner creditors this week.

Mr Waller said the ad, which he described as a "cockup," should never have run.