Monday, 15th March 2010

Business from the Guernsey Press

Contract award will not harm Alderney, says Guernsey firm

Gavin Rihoy of contractors J W Rihoy and SonsJ. W. RIHOY managing director Gavin Rihoy has brushed off the hostile reaction to the firm landing a big building job in Alderney.

The island’s Policy and Finance Committee has recommended that it build the New Connaught Care Home, ahead of island builders J. F. W. Main and A. J. Bohan.

Mr Rihoy said Alderney firms and labour would be used as much as possible.

His firm submitted a tender for £2.1m., £185,000 less than Main’s and £320,000 less than Bohan’s. Rihoy’s timescale of 52 weeks was also shorter than those of the local firms at 75 and 78 weeks respectively.

Alderney States is expected to ratify P&F’s decision at its next meeting on Wednesday, much to the anger of several islanders at this week’s People’s Meeting, as well as Main’s owner, Jackie Main, who expects job losses to result.

He said: ‘I am disappointed that the contract has not been given to a local company. It is our money that is being spent and it is now going to be spent outside the island. I think the decision will lead to job losses. There’s a shortage of work here already – my staffing has recently been reduced by people retiring and moving on and those men haven’t been replaced.’

Former States member Mr Main said Alderney always awarded big contracts to off-island businesses.

‘If you look at the record of the States, all their big contracts are put out. A lot of it is personal bias and it has always been the same. Perhaps there’s some jealousy there, I don’t know.

‘You can interpret the facts and figures whichever way you want, but I’ve seen it done by the States so many times. They are forgetting all the chat beforehand about local businesses being preferred. However, talk is cheap. When it comes to the crunch they do whatever they like.’

Mr Main also had his doubts about Rihoy’s tender.

‘I doubt it will be done in 52 weeks and I doubt it will be done for that price.’

Mr Rihoy disagreed.

‘We’re very pleased to have been awarded the contract and we’re confident the job will be completed on time and within budget – that’s why we submitted a tender for that price and timeframe.

‘We’ve worked in Alderney in the past on two significant projects and while there was some anti-feeling towards a foreign contractor at the outset, by completion that had been dispelled. When we finished the jobs, the workers wanted to have a drink with us and keep in contact.’

Mr Rihoy said his company would do all it could to employ Alderney people.

‘I’ve already spoken to two local contractors about supplying plant and labour and to Blanchards about materials.

‘I’m absolutely confident this decision will not lead to job losses in Alderney.’

The new facility, which will replace the current home in Connaught Square, is to be built on land next to Jubilee Home off the High Street.

The proposed two-storey building will provide 24 ensuite bedrooms and feature high specification energy efficient heating.

Writing in the September Billet, P&F chairman Richard Willmott said the decision to use Rihoy’s would save Alderney £300,000.

‘While the committee would have preferred to recommend awarding the contract to a local building contractor, the tender cost difference of £185,000 between J. W. Rihoy and the lowest local tender, together with the additional costs associated with an extended construction programme estimated at £115,000, (such as professional fees, the cost of keeping the existing home running and the loss of income from the new units), made this decision financially unacceptable.’

Article posted on 18th September, 2009 - 2.30pm

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22 Article Comments

  1. Island Girl

    The States members Of Alderney should vote AGAINST this contract being awarded to J.W. Rihoy whilst I am sure they are a really, really good building firm and will do the job well, in budget and on time…….. it should be awarded to an ALDERNEY firm NOT a GUERNSEY firm.
    The commerical quay project was also contracted to a Guernsey firm and very few jobs actually were given to local men ( 5 jobs with probably 3 times that to Guernsey and UK workers )despite again it being said that local labour should be used first and I am lead to believe that as the project is coming to it’s natural end it is Alderney workers that are being finished FIRST whilst the Guernsey firm are still continuing to fly in,give a subsistance allowance and accommodate workers from Guernsey and the UK surely it would make sound ecconomic sense to keep the Alderney men on who only require a wage not the flights and allowance ?! . And to be honest I can see this story repeating itself with Rihoy’s.
    The building trade is facing tough times ahead and with this contract going to an outsider yet AGAIN(Hospital extension – Charles Le Quesne , Commerical Quay – Geomarine and now Care Home – Rihoy)and this contract needs to be given to one of the local firms.
    PLEASE, lobby your states members to vote against this tender on Wednesday 23rd Sept.

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  2. Martino

    A bit of news for you island girl:
    You and your island are part of the Bailiwick of Guernsey and It is a Bailiwick (therefore, local) firm that has been awarded the contract.
    Another piece of news you may not be aware of:
    Your island, Alderney, with a population the size of a small Guernsey parish, receives a totally disproportionate amount of funding from the Bailiwick cake. Imagine if Torteval were to demand its own harbour and airport, plus its own hospital and police station, and you’ll get some idea.
    If you insist on an Alderney firm doing this work why don’t you go the whole hog, like Sark, and see what it is like with complete financial independence from Guernsey.
    We who live on the bigger island won’t mind one jot. In actual fact it would result in the release of a pretty significant amount of hard cash to spend on vital Guernsey projects during these troubled times.

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  3. Mac

    I can understand where you are coming from Island Girl but surely Alderney is just another parish of Guernsey and don’t all of our taxes go into the same pot, or do I have this wrong?

    Would local contractors have the expertise?

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  4. Wingy

    I wonder if Mr Rihoy would like to enlighten us as to who the local contractors are that he has spoken to.

    I fully agree with the comments by Island Girl, its about time ALL of our states members looked after the people of Alderney.

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  5. Angry Local

    Isn’t it about time that ALL of our States Members actually made decisions to benefit our island rather than crippling it? When the local building trade is at an all time low how can the Alderney States consider awarding the Connaught Care Home project to a Guernsey building firm?
    Lets hope that sense prevails before the States Meeting on Wednesday the 23rd September.

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  6. GG

    I can see both points of view, but my only concern would be that are those in the Alderney Building firms actually local? As in lived in the island for over 15 years?

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  7. Island Girl

    Whilst I agree with Martino and Mac we are all alledgely “one big happy” parish as we all pay our income tax and it goes into one pot. In an ideal world it would work like that but…… it doesn’t and without trying to change the subject matter that this feedback is all about. Alderney people cannot buy on the Guernsey local market should Guernsey people desire to buy here in Alderney they can,we have to have a valid ” right to work” permit to work in Guernsey where we have to prove that we are able to do a job a local cannot and only for a limited amount of time , no such rules here in Alderney anyone can just come and do the job no questions asked. There are many more examples that I could quote to comapare the islands but,that was not my point in the first instance and I am not complaining about these issues. My two children were born in Guernsey but will not have the same rights as a child born in Guernsey and their parents choosing to live in Guernsey it is just the way it is.
    I am NOT advocating that we go it alone from Guernsey quite simply it would be finacial suicide for the island.
    All I was expressing was anger that yet again our States Members have voted for a huge social project to be given to a firm from off island. I would have objected had they have been from the UK, Ireland or even China it isn’t an anti Guernsey issue !! And I am sorry if my comments came over as such.
    I am hoping that I am totally wrong and this contract with Rihoy’s will give a huge boost to the guys here who work in the building firms who are already on a short working work, or about to be put on a short working work or about to be made redundant.
    Wednesday 23rd is the day we see what our States Members decide to do and I am sure Rihoy’s will be voted to do this contract but, let’s hope when the local lads are at the States Office signing on they will look at the job board in the office and see it filled with Rihoy’s wanting staff !!.

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  8. Dave Lepage

    whilst i have a little bit of sympathy for island girl i feel she doesn’t quite understand the facts. as was already stated alderney is part of the bailiwick therefore all monies stay within the bailiwick its common sense really. J. W. RIHOY has stated that they will employ some local people so surely that smacks off the argument that it is not of benefit to the island, also does the island have adequate resources to carry out such a big venture. look at it from another point of view, here in england there are nearly 2.5 million unemployed yet the british government chooses to emply overseas nationals to repair our roads and work in the health sector etc desoite there being untold british workers unemployed.

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  9. Mac

    Islang Girl

    Just one small point. We in Guernsey DO have to have a permit to work in Alderney and it is strictly followed up on Island.

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  10. Greg

    Surely the contract should go to the firm putting in the lowest tender? It’s not as if the Bailiwick is swimming in cash at present!

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  11. Island Girl

    Mac…. I stand corrected !!.

    Greg….. yup, the lowest tender would be ideal (I just wish it had been the Alderney firms )and let’s hope that Rihoy’s come in on budget and on time. I and alot of other Alderney residents will be watching this project with great interest and will compare the figures at the end of this build.

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  12. Simples

    Does this not show how much Alderney builders overcharge for work. My neighbour just had quotes for alterations to his house which are higher than central London prices!!. Perhaps they should think about reducing their labour rates – I’m sure the level of work would soon recover.

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  13. Paul Le P

    Aren’t UK Contractors often used on Guernsey projects? Why is this such big news?

    Besides, as has already been pointed out, the contract has gone to a Bailiwick company, so what’s the problem?

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  14. Greg

    Island Girl, well if Rihoy end up charging more and taking more time I hope you and other Alderney residents will be very vocal!

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  15. Andy

    Out of interest can Alderney residents buy Guernsey closed market housing or are we treated as foreigners.

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  16. peterroffey

    Andy,
    I’m not sure of the present position but the stance used to be that if Alderney ever decided to extend the Housing[Control of Occupation]Law to cover that island then Guernsey would be happy to extend total freedom for islanders from Alderney to move into “local market” housing in Guernsey. However while Alderney maintained an open door policy towards the rest of the world [which is entirely their choice] then the fear was that it could simply be a conduit into local market housing in Guernsey. I understand however that some compromise was drawn up involving licensing for those born/long term resident in Alderney.

    On the topic under debate – surely this discussion is happening at the wrong time. If it was felt that only an Alderney firm should be allowed to win the contract then tendering should not have been open to outside firms. I think that would have been a mistake but it would have had some rationale. Having allowed non-island firms to tender it would surely be perverse not to accept the keenest tendet.

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  17. peterroffey

    PS.

    The technical/pendantic answer to your question Andy is that anybody can buy any property in Guernsey. The restriction is on occupation.

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  18. Disheartened

    Could the States of Alderney PLEASE take off their blinkers and look at the bigger picture.
    There is a difference of £185,000 between Rihoy and J Mains quote. How much will it cost to pay unemployment benefit to all the local people of Alderney who do not have any work? What about the loss of States Insurance and Income Tax Contributions that will be lost due to all those unemployed builders?
    If Mr Mains quote were accepted it would be giving local builders work for 75 weeks thus Guernsey would still be receiving all the relavent contributions. Or is it as a Alderney States Memeber was overheard saying ‘IT’S GUERNSEY PROBLEM TO PAY UNEMPLOYEMNT BENEFIT NOT ALDERNEY’

    Lets be realistic here!!!!!

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  19. Anne

    In order to obtain a work permit to work in Alderney, all jobs have to be advertised locally. If the committee feel there is not a qualified “local” person then they can issue a work permit to non residents. With an abundance of suitably qualified builders how do they propose to get around that?? After all, remember the story about the lady who bought her Kitchen from John Lewis? The committee refused to give John Lewis kitchen fitter a work permit as there were several qualified people here to do the job!! One rule for us and one for the States of Alderney.

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  20. Island Girl

    Thankyou……….. I was begining to feel that I was in a minority out here and battling for Alderney all on my own !!.
    Tonight will see which States Members will be “true” to us Alderney voters and vote against this contract going to Rihoy’s. NOTHING PERSONAL against Rihoy’s they are excellent builders,projects completed to a very high standard, on time and on budget , train local Guernsey lads on a apprentice scheme – See their website it is very informative .
    I hear and I trust that I have got this totally wrong that because it is a States Project that work permits are not needed ? Anyone out there know if this is true ? .
    I personally will be watching which States Members vote to accept for this project to go ahead and then when they stand for re-election will not be casting my vote their way. And i hope others do this too.

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  21. Martino

    I hear on Radio Guernsey that common sense and good statesmanship prevailed at the States meeting and the Rihoy’s tender has been rightly approved.
    It’s still astonishing, though, that a couple of Alderney States members were willing to see the tender dismissed in favour of a ‘local’ builder who would have charged £185,000 more and taken six months longer to complete the very same job.
    Looney tunes!

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  22. Intrigued Local

    Well all I can say is that I cease to be amazed with the information I am being told about the Royal Connaught Tender. One particular rumour that rings alarm bells is that apparently Rihoy’s are in fact part of the same company group as Geomarine. If this rumour happens to contain any truth then surely a certain states member should have abstained from voting last night!!!

    May I take this opportunity to sincerely thank our States Members Mr Allen and Mr Beaman who voted in favour of keeping the tender local.

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