Panel member on HGC winning bidder's list
BEN HEATHER Last updated 05:00 11/04/2012


The president of Las Vegas-based firm Sigma Engineering Solutions, Joseph Farre, was part of the Canterbury Earthquake Recovery Authority's (Cera) technical review panel assessing tenders for Christchurch's biggest post-earthquake demolition jobs.

However, Fletcher also named Farre as part of its project team in its bid to knock down the Grand Chancellor, claiming his company would peer-review its demolition method.

As a member of the panel, Farre would have been privy to information on the competing tenders to demolish the hotel and involved in the final recommendation to award Fletcher the $12.3 million contract.

Cera has denied any conflict of interest.

Chief executive Roger Sutton said Farre was never involved with Fletcher and his name was included in the company's bid without his permission.

"Fletcher was advised that Mr Farre was on the technical review panel and that he would not be part of Fletcher's bid," he said.

"When Fletcher revised its tender it failed to correct this. Fletcher has never used Mr Farre as a part of its team."

Fletcher spokesman Barry Akers said Farre's name was included on the recommendation of subcontractor Ward Demolition, but he was unable to confirm whether Farre had given consent.

"It would seen unlikely [that Fletcher would include his name without permission]."

Akers said that when Fletcher became aware of Farre's involvement in assessing the tenders, it asked Cera whether he should be removed from its submission, but was initially told it was not a problem.

However, after Fletcher submitted its proposal, Cera "clarified" that Farre's apparent involvement was not appropriate.

"They said, 'It wouldn't be appropriate, take him out', so we took him out," Akers said.

Farre's role was revealed in hundreds of documents released by Cera under the Official Information Act more than nine months after they were requested.

The documents also show Fletcher was a late arrival to the tender, scraping in after another firm asked for a deadline extension.

Under the proposals initially submitted, Fletcher's demolition method was the most expensive and was expected to take the longest (10 months).

However, adjustments made by Cera largely evened out the cost and Fletcher was chosen because of its "conservative practical approach".

The demolition of the 26-storey building was announced in May and quickly attracted controversy, with one unsuccessful bidder claiming it was tainted by a conflict of interest.
 
Farre could not be reached for comment.
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