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Government Needs to Explain Road Works Contract

Cassy O'Connor MP

Cassy O'Connor MP  -  Thursday, 29 October 2015

Tags: Roads, Government Procurement

Cassy O’Connor MP | Greens Leader and State Growth spokesperson

The government needs to explain why a multi-million dollar contract for road works in Tasmania was awarded to Hazell Bros Group without going through any procurement process.

The Department of State Growth Annual Report released today reveals that Hazell Bros Group was largely unsuccessful in winning competitive tenders for road works in the past financial year, but did receive $4 416 766.96 for Midland Highway, south of Kempton, improvements.

The most significant roading contract was awarded to VEC Civil Engineering Pty Ltd through a tender process worth $8 816 807.76.

It has been longstanding government policy to advertise all contracts worth more than $50 000 in a public tender process, except in very exceptional circumstances.

Given the very significant sum awarded to Hazell Bros outside the process, the question needs to be asked.  Why was a local supplier who missed out on large contracts through the competitive tender process awarded such a major contract outside government procurement procedures?