WATERWORKS INVESTIGATION

New Zealand Times, Volume XXXIII, Issue 5289, 8 March 1878, Page 3

WATERWORKS INVESTIGATION

COMMUTE K’S REPORT.

The following report was read at the meeting of the City Council y-aterday. The Special Committee appointed to inquire into the Waterworks Extension Contract have the honor to report as follows ; ! - -They find that a contract was' entered ihto by Mr. Joseph Saunders to construct the Wellington Water woks for the Sum of £17,195, in terms of the specifications Signed; byhim. They find from Mr. Blackett's report that savings were effected to: the extent of £2304' Os. 6d., thus reducing the amount of the contract to £14,830 19s; 6d. I’o this there has to be added the sura of £4,851' 19s. f6r extras (see Mr. Blackett’s report of the,3oth January, 1878, Appendix C.), making the total amount 1 of the contract up to £19.682 18s. 6d., liable to be reduced by any further savings which may be effected, or increased by additions for extras.: ■ ■■ i - ' They find that up to the 17th November, 18777 several months before the ; contract was completed, l the sum of £15,000 bad been paid to the contractor, and that a certificate was issued autborisieg' him to receive i another. £IOOO, or £16,000 in all. ! »'They find that on tho '7th December, 1877, a cheque for £2970 was illegally paid to tha contractor, being a payment on account of, a claim for:extras amountingi to £3969 jl7s., sent in by the contractor.’' This payment wasmade, without the . sanction or ithe .approval of the ■ Council'. Jl': j " They find 'that the’said sum of £297.0,‘50’ .illegally paid to the contractdr, was refunded

by Mr.' 'Saunders as soon as he became, awaj-e that the. amount ought not to .have been paid to Him. .... They, find, that ?the . balance due to Mr, Saunders, when;'all -the work.-haa .been com-, pleted. and .passed,, will .be, £4082 195., less 5 per cent., on the whole .contract-i-say £934 2s. lid., liable ,to be, increased or diminished by savings,or extras i They find that the sum of £984 2s. l.ld>, as before mentioned, willbe due to the contractor, _ three mouths, after the contract has been completed, provided the works are in good order at that date. They-find that, the Engineer,in charge .(Mr, N. Marohant) has .not givou to his duties that close ."and .vigilant attention; which they required, and that he has, in the issue of certain certificates: t 6 the contractor, displayed an i amount of carelessness; and indifference, to the interests iof the; Corporation,- that renders ;his. further, continuance in the service uhadvisible.

They find that the late Town Clerk (Mr. Hester) was also, exceedingly lax in h’s attention to his duties in this matter, his ignorance of : the, terms of the contract, id. (matters pn-. which he ought' to have been acquainted), having in conjunction with the Engineer's care-lessness;-led;.to-the. contractor (Mr. Saunders) receiving a- larger per centage of moneys ,dur- , 'ing the construction of the works than he was. - entitled to under the contract.' * ‘ - i They find that tke action of the late Mayor; (Mr! ! Hutobisoh)»in 'signing < the * cheque for' £297o'for extras, without 1 examining xloselyi into the matter, was unjustlfialllo, as he ought to have held the payment' of the certificate over tilVthVnext meeting ‘ of-the Council, or. called a special meeting to deal with it. ~ ~ ’--■The l committee ‘ exonerates Councillor Mac, donald from blame for ’signing .the cheque for £2970, as it was done In' the ordinary course of business and ih' compliance with the piaCr tice, improperly sanctioned by the Council. . The evidence discloses the fact that; before tenders WerC sent in some of the tenderers were misled’ by the^Engineer-'on many ' important mattei-s‘connected with the specifications, .in, consequence of which the tenders, in two bases, were £6OOO higher than' they, would otherwise have ■been,' .The committee call, at-. , tmition to the-matter,’because the effect of misleading tenderers in this way is to discourage them from tendering 'for other 'Corporation, Works, and diminished competition must neoesiearily'result in the Corporation haying ,to pay higher prices for its works; 1 ' ' -i ; ; ......qThe committee recommend that in future.it should form part of the duty of the .Town Clerk to ; see'that the conditions. Of all Corporation; contracts are strictly observed,' and would. also reepmmend that the provisions of clause 107;o£ the Municipal Corporations Act,* 1876( should in’future be strictly 'adnered:to. I , .’committee ire of! bpinibh that.great credit.ts due to' the Cohsultiug'Ecgiueer, John Blackett, Esq.; for the trouble he has taken in supervising the work, and keeping down the expenses. . ... 1 > The cost of conducting this enquiry amounts to £145 17s. Bd., as'per schedule annexed, and the committee request the Council to order an early settlement of these accounts. 1 < . ; k ' Geo. Hunter, Chairman.;, Wellington, 7th March, 1878. • ■! ■ .