Fletcher EQR pays $1b to contractors
Fletcher EQR has topped $1 billion in payouts to contractors as part of its earthquake repair work.
Fletcher chief communications manager Barry Akers said that for residential repair work, between $60 million and $70m a month was going into the Canterbury economy by payments by the company to contractors.
By the end of last year, the total had reached $995.8m paid to contractors.
''In about the first week of this year we crossed that threshold of $1b, which in very broad terms would put the project roughly a third of the way through of the residential repairs,'' Akers said.
After the September 2010 quake, Fletcher was appointed to manage repairs for about 60,000 homes with between $10,000 and $100,000 in damage. Later it adjusted that band to $15,000 to $100,000.
Residents with less than $15,000 damage get a cash settlement, while those with more than $100,000 damage have the work taken over by their insurer.
The job has grown to 90,000-plus homes, with the total job estimated to cost $3b, and generate tens of millions in management fees for the company.
The total residential rebuild, including the $3b of Fletcher work, plus the new homes to replace those demolished as a result of the quakes, is put at $13b.
Fletcher plans to finish 80 per cent of its work on residential repairs by December 2014 and the bulk of the work by the end of 2015.
''We are on track to achieve the targets,'' Akers said.
Fletcher is part of the private-public alliance to oversee a $3b rebuild of Christchurch's shattered infrastructure. The group is known as the Stronger Christchurch Infrastructure Rebuild Team.