Inverell Shire Council has endorsed a procurement plan to secure bitumen and aggregate services for the 2026–2027 financial year, ensuring programmed road maintenance and construction activities can continue as required despite ongoing market uncertainty.
Council resolved to extend its current agreement with RPQ Spray Seal Pty Ltd for Bitumen and Aggregate Services under existing Local Government Procurement contract arrangements and grant authority to the General Manager to negotiate and accept 2026–2027 unit rates as a standing offer, including CPI adjustment.
The decision comes at a time of significant global oil price volatility linked to conflict in the Middle East, which has affected bitumen prices and created uncertainty around the viability and timing of Council’s 2026–2027 Bitumen Resealing Program. Publicly available pricing indicates bitumen costs have risen from around $1,600 per tonne in mid-2025 to approximately $2,000 per tonne in May 2026.
While the full resealing program for 2026–2027 has not yet been determined, Council will still require bitumen and aggregate services throughout the year for programmed maintenance and construction works as they arise.
Continuing under the existing Local Government Procurement arrangement provides price certainty in a volatile market, maintains compliance with Council’s procurement policy and avoids the need for a formal tender process before a detailed scope of works has been finalised.
RPQ Spray Seal Pty Ltd has delivered bitumen and aggregate services to Council for a number of years, with strong performance and competitive pricing. The standing offer arrangement does not commit Council to a defined volume of works, allowing flexibility to respond to market conditions while preserving the ability to proceed with works if appropriate.
Mayor Kate Dight said “Council’s decision strikes an important balance between flexibility and value for money”.
Mayor Dight said, “This approach ensures Council can continue to respond to road maintenance and construction needs across the Shire while managing uncertainty in the bitumen market.
It provides the flexibility we need without locking Council into a fixed program before conditions are better understood.”
Media Release: Inverell Shire Council
