Queenstown contractor Steve Rout has lost one bid to retain council-linked work but won another.
After the businessman’s self-titled Steve Rout Contracting went bust in May, he proposed to Queenstown Lakes District Council’s so-called “tenders board” that the failed firm’s place on QLDC’s preferred-contractor list should be transferred to Blue 9 Ltd.
Rout is the sole director of Blue 9, which also bought the business and some vehicles from Steve Rout Contracting “at market value”, the failed firm’s receiver reports.
QLDC turned down the transfer, saying council projects that would have gone to the defunct company will now be openly tendered – and Blue 9 can pitch for the work along with other parties.
Separately, an unnamed party has also applied to QLDC – this time successfully – to transfer the lease of a Shotover Delta gravel pit to Blue 9.
The former leaseholder of the pit was Queenstown Hardfill, a company 50 per cent owned by Steve Rout Contracting.
Steve Rout Contracting itself is now in liquidation, with creditors likely to whistle for $3 million.