The contract has two extension options, which, if agreed upon, would total a five-year contract estimated to be worth $8.25 million.
Council's infrastructure director Phil Hoare said there were no lump sum payments but "payments are made only for works that we engage the contractor to do.”
“The purpose of establishing such a contract is so we have a contractor on hand who can deliver the works at an agreed contracted rate that has been tested in the market to ensure we achieve best value,” he said.
“The estimated value of the contract is established from estimated quantities of work to be delivered over the period of the contract, however the expenditure is subject to annual works programs.”
Councillor Kim O'Keeffe, who moved the motion at Tuesday night's council meeting, said stabilisation works were used for multiple upgrade and maintenance programs.
Motion seconder Cr Fern Summer said the signing of the contract would fulfil what ratepayers wanted from council.
“I think the issue might be the amount of ratepayers — per capita, per road — works out that there's less ratepayers paying for more roads, being in a regional area,” she said.
“It can end up quite an expensive flow-on for ratepayers, but this is the sort of thing I think they want us to do.”
The new contract will include just one supplier — Szabolics Constructions Pty Ltd — compared to the previous two-supplier agreement.
Deputy Mayor Dinny Adem said one supplier could create a potential concern, even with the council appointing a probity officer to oversee procurement.
However he said he had "faith in the decision-makers on that one''.
Mr Hoare said the contract would cover many locations across the municipality.
“As an example, in the 2020-2021 financial year’s program, one of the roads that will be resealed is Merrigum-Ardmona Rd east of Tatura-Undera Rd, and as part of the Major Surface Treatment Program works will be undertaken on Byrneside-Gillieston Rd, however there is an extensive list of sites for each year’s program,” Mr Hoare said.
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