Dulux, Resene, Valspar win $90m Chch paint contract

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

BUSINESSDESK: Dulux Group, Resene Paints and Valspar Corp have won a $90 million government contract to supply eight million litres of paint for use in rebuilding houses in Christchurch.

The companies will jointly supply the paint in one of the biggest such tenders ever awarded in New Zealand.

That is enough paint for 100,000 houses requiring $10,000 to $100,000 worth of repairs, says the Industrial Consumables Christchurch Reconstruction - Paint tender posted on the Government Electronic Tender Service website.

Based on eight million litres of paint, "the associated dollar value is about $80 million to $90 million," Ministry of Business, Innovation and Employment spokeswoman Tracey Dillimore told BusinessDesk. It received five bids for the tender, but two were non-compliant.

Paint has been a sticking point in the rebuild, with the Canterbury Master Painters Association labelling the original tender as "immoral and anti-competitive" for shutting out small businesses and erasing their margins.

Chairman Paul O'Donnell told BusinessDesk the association plans to oppose the government contract through Can Trades, a lobby group formed in July amid concern the government's management of the $20 billion-plus rebuild is slashing their earnings and favouring big business.

"This is totally anti-competitive and the total saving by the government is negligible," Mr O'Donnell says.

Can Trades is made up of master plumbers, master painters and master builders.

 


3 · Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Post Comment

3 Comments & Questions

Commenter icon key: Subscriber Verified

Thats equivalent to $1 per litre of paint, or thereabouts; and there'd be a margin left in that.

Shows the margins paint maufacturers and sellers enjoy.

Surely the paint packaging, distribution and selling doesnt cost $7 to $15 per litre, and thats on trade prices.

Another welcome to ripped NZ consumers.

Reply
Share
  • 0
  • 0

if I do calculations right, $90m/8m liters = $11 approx. per l, not $1 :)

Reply
Share
  • 0
  • 0

I would put it to you some of the larger painting companies are buying their paint at a cheaper $/L. For the Government to sign this deal they must to getting a pretty good back hander from the paint suppliers?

Reply
Share
  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6638 -0.0031 -0.46%
AUD 0.8929 0.0011 0.12%
EUR 0.6053 0.0015 0.25%
GBP 0.4294 0.0019 0.44%
HKD 5.1481 -0.0222 -0.43%
JPY 81.3070 -0.4520 -0.55%

Commods

Commodity Price Change Time
Gold Index 1170.1 6.610 2015-07-06T00:
Oil Brent 57.0 -5.540 2015-07-06T00:
Oil Nymex 52.8 -4.090 2015-07-06T00:
Silver Index 15.7 0.190 2015-07-06T00:

Indices

Symbol Open High Last %
NZX 50 5776.6 5816.5 5776.6 0.46%
NASDAQ 4963.8 5020.7 5009.2 -0.34%
DAX 10930.0 10946.9 10890.6 -0.58%
DJI 17728.1 17734.4 17730.1 -0.26%
FTSE 6535.7 6543.8 6535.7 -0.24%
HKSE 25391.8 25439.3 25236.3 -1.03%
NI225 20354.2 20428.0 20112.1 1.31%