Query over affordable housing tendering

Breen Construction didn’t have to tender for the first stages of the housing trust’s Tewa Banks...
Breen Construction didn’t have to tender for the first stages of the housing trust’s Tewa Banks development in Arrowtown. PHOTO: SUPPLIED
With Queenstown’s affordable housing trust using only one builder for all its Whakatipu developments, a rival builder is asking how it knows it’s getting the best price.

Julie Scott, Queenstown Lakes Community Housing Trust’s chief executive, admits its longtime builder, Alexandra-based Breen Construction, didn’t have to tender for the first two stages of its four-stage Tewa Banks complex in Arrowtown, currently under way.

However, she says they’ve gone to market several times over 10 years "to test the market, test Breen’s pricing, and it’s always been very favourable".

"We have a procurement policy that outlines whether we need to go to market or not."

Scott says they’re negotiating on the construction of Tewa Banks’ third stage, "so there’s no requirement and obligation for us to use them".

"We’re obviously conscious of other construction companies in the district who are wanting a shot, but to date none of them have been able to come close to Breen’s in terms of pricing and performance."

She believes Breen "does an exceptional job of delivering really good housing, working with us on the defects, just everything".

"Their attention to detail is really good."

Scott notes the trust’s been using non-Breen builders for its Upper Clutha projects.

Last year she told Mountain Scene her trust’s long ongoing supply of work for Breen "helps us negotiate a good construction cost".

Meanwhile, Scott says her trust’s signed an agreement regarding affordable housing with the developer behind a fast-track proposal for Queenstown’s Fernhill, revealed in last week’s Scene.

The chalet-style housing is part of a project — proposed by Australia-based cancer surgeon Dr Guy Hingston — which also includes a funicular railway and possibly a skifield on Bowen Peak.

"I’ve had a couple of meetings with him, and they’ve signed up to an agreement to deliver some community housing to our trust if the project goes ahead.

"It’s in line with what’s been done historically, so around 5% of the development will be set aside for community housing."

 

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