PROJECTS AND PROPERTY COMMITTEE

15 FEBRUARY 1996

A meeting of the Projects and Property Committee

was held on Thursday 15 February 1996 at 4.00 p.m.

PRESENT: Councillor Ron Wright (Chairman),

The Mayor,

Councillors Oscar Alpers, Carole Anderton,

Morgan Fahey, Ishwar Ganda, Ian Howell,

Alister James, Garry Moore and Denis O'Rourke.

APOLOGIES: Nil. IN ATTENDANCE: Councillor David Buist. Councillors Howell and O'Rourke arrived at

4.03 p.m. and were present for all clauses

except clause 4. Councillor Alpers arrived at 4.07 p.m. and

was present for all clauses except clause 4. The Committee reports that: PART A - MATTERS REQUIRING A COUNCIL DECISION

1. CHRISTCHURCH CONVENTION CENTRE: RR 2073 CONTRACT ADMINISTRATION

The Committee considered the following report from Albert Louman, Major Projects Co- ordinator: "The purpose of this report is to seek Council approval for the appointment of Mr B Dacombe as `Engineer' under the Contract for the Convention Centre and further to seek approval for the authorisation of variations.

1. APPOINTMENT OF ENGINEER

The conditions of contract for the Convention Centre are NZS 3910:1987 `Conditions of Contract for Building and Civil Engineering Construction'.

Clause 1.2 of NZS 3910 defines the `Engineer' as the professional engineer, architect, surveyor or other one person named or identified in the Contract Documents.

Furthermore Section 6 of NZS 3910 covers the Engineer's powers and responsibilities under the Contract and more specifically Clause 6.2.1 `Appointment of Engineer' states that the name and professional qualification of the Engineer shall be set out in the Special Conditions.

1 Cont'd

The Special Conditions of Contract for the Convention Centre state against Clause 6.2.1 that the `Engineer' shall be Mr Barry Dacombe of Warren and Mahoney Architects Limited.

2. AUTHORISATION OF VARIATIONS

Clause 4.7 `Variations' of the Project Manager's Conditions of Engagement states that `The Project Manager may authorise Variations to the Contract(s) to the extent delegated in writing by the Principal. Any other Variation shall be referred to the Principal for his approval and shall not be issued to the Contractor without the Principal's written authority. The Project Manager shall keep the Principal fully informed of any future Variations which may be reasonably expected to occur.'

Clause 8 of NZS 3910 covers the issue of Variations to the Contract and more specifically Clause 8.1.1 states that `The Engineer may order any Variations to the Contract Works within the scope of the Contract ...'.

As can be seen from the above it is not clearly defined who is responsible for authorising Variations on the Convention Centre Contract and the various monetary levels.

To resolve the above ambiguity I recommend that the following procedures be implemented on the Convention Centre Project.

* Variations involving no cost adjustment to the Contract Price shall be processed by the `Engineer' under the Contract in accordance with Section 8 of NZS 3910.

* Variations involving a cost adjustment to the Contract Price up to a total value of $5,000 shall be processed by the `Engineer' under the Contract in accordance with Section 8 of NZS 3910.

* Variations involving a cost adjustment to the Contract Price between $5,000 and $10,000 shall be processed by the `Engineer' under the Contract in accordance with Section 8 of NZS 3910 but shall have the prior approval of the Project Manager (Octa Associates Ltd).

* Variations involving a cost adjustment to the Contract Price over $10,000 shall be processed by the Engineer under the Contract in accordance with Section 8 of NZS 3910 but shall have the prior approval of the Major Projects Co- ordinator (Mr A Louman) who may have to seek further Council approval.

* All Variations involving a cost adjustment to the Contract Price shall be reported in the monthly progress report to the Project Control Group Meeting."

1 Cont'd Members expressed the opinion that the Committee's prior approval should be sought to proposed variations involving a cost adjustment to the contract price in excess of $25,000. Recommendation: 1. That Mr B Dacombe of Warren & Mahoney Architects be appointed as the `Engineer' under the Contract for the Convention Centre. 2. That the above outlined procedures in respect of the authorisation of Variations be adopted, subject to incorporation of a further requirement for variations involving a cost adjustment to the contract price of $25,000 or more to be subject to the prior approval of the Projects and Property Committee.

2. HIGH STREET AIRBRIDGE RR 2073 The Committee considered the following report from Mr Lewis Burn on behalf of the Roading and Traffic Manager: "The purpose of this report is to obtain the Council's approval to assign the airspace lease in respect to the High Street Mall overbridge.

The lease of the airspace above High Street taken up by the airbridge between the Triangle Centre and the National Mutual Centre is presently held in the joint names of Southfields Investments Limited and Glentree Properties.

Southfields Investments Limited have sold their interest in the National Mutual Centre to R I Chan Investments PTE Limited. Part of the transaction involves the assignment of the interest held in the airspace lease. There is no objection to this assignment which is a procedural matter and cannot be arbitrarily withheld."

Recommendation: That the interest of Southfields Investments Limited in the High Street overbridge (airspace) lease be assigned to R I Chan Investments PTE Limited. PART B - ITEMS DEALT WITH BY THE SUBCOMMITTEE AND

REPORTED FOR INFORMATION ONLY

3. CONVENTION CENTRE AND RR 2271 SPORT AND ENTERTAINMENT CENTRE: RR 2274 MONTHLY PROGRESS REPORTS The Committee received monthly progress reports submitted by Albert Louman, Major Projects Co-ordinator on the following projects: * Christchurch Convention Centre

* Christchurch Sport and Entertainment Centre

4. ELECTION OF DEPUTY CHAIRMAN The Committee resolved that Councillor Ian Howell be appointed as Deputy Chairman of the Committee.

The meeting concluded at 4.30 p.m. CONSIDERED THIS 28TH DAY OF FEBRUARY 1996

MAYOR

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