THE COUNCIL AND THE WATERWORKS CONTRACTOR.

Oamaru Mail, Volume III, Issue 724, 5 August 1878, Page 2

THE COUNCIL AND THE WATERWORKS CONTRACTOR.

A special meeting of the Municipal Council was held this "morning, when there were present His Worship • the •Mayor, 'Councillors * Mainland, Spence, Proctor, Gibbs, Humphrey, and Hend-' land. The Engineer was also present. The meeting was held to consider a letter from Mr. Henderson, contractor, for the Waterworks, relative to the reduction in the detention money on the contract from -20 to 10 per cent., Mr. Henderson pointing out that .20 per cent, was an exhorbitant retention, and that 10 per cent, was the usual amount retained on all Government and other large contracts. The engineer having been consulted in the matter, said that as it was originally .intended to let the work in six different contracts he had specified a 20 per cent, retention, but that he was now of opinion that as the work had been let in one contract the smaller retention was quite sufficient. It was resolved, after discussion, '•'That the Council will consent to the reduction of the retention money to 10 per cent., as proposed, on the uncompleted sections, and to the reduction of the retention money on the completed (Black Point) section from Lh'oo to L2OO, thus paying Mr. Henderson, at his request, the sum of L 2200 on the above account, subject always to the following provisions :—l. That Mr. Henderson shall pay- interest to the Council on such sum at the ordinary bank rate. 2. That Mr. Henderson shall provide, to the satisfaction of the Council, one or two additional surety or sureties. 3. That the present sureties shall sign a paper consenting to the arrangement, and reaffirming their liability as sureties under it. 4. That any necessary addendum to the contract by way of memorandums to set forth the foregoing or any other requisite instrument, shall be made or prepared by the Council's solicitor, at Mr. Henderson's expense, and signed by Mr. Henderson. 5. That the money shall not be paid until all the instruments necessary have been duly executed. G. The cost of all such instruments to be deducted from the sum paid."