TasWater's chief executive has admitted to failures in the delivery of its capital works program, but insists its model is the best way to get the job done.
TasWater formed a partnership with construction firm CIMIC in 2018 which resulted in the creation of the Capital Development Office, charged with the responsibility to deliver its $1.8 billion capital works program.
Complaints emerged last year about unethical contracts offered to Tasmanian contractors from CDO and lengthy waits for work that exposed them to an unacceptable level of risk.
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TasWater chief executive Mike Brewster on Thursday told a parliamentary inquiry the company determined some of the contract conditions were onerous and required changing after meeting with the Civil Contractors Federation in December.
He said the level of risk between the alliance and subcontractors was disproportionate.
"And we took action," Mr Brewster said.
Civil Contractors Federation chief executive Rachael Matheson has previously said the alliance model was the wrong fit for Tasmania.
But Mr Brewster said it was required in order to progress the massive infrastructure program in the 10-year time frame.
He said bidders were called for nationwide and CIMIC subsidiaries CPB Contractors and UGL Limited provided the best value for money.
"Did we get everything right - of course we didn't," Mr Brewster said.
He said projects would have taken longer to deliver or simply would not happen at all without the alliance.
"The complexity of our scheme and our model makes it unique," Mr Brewster said.
"The alternative is that we would be slowing down our capital program significantly."
Tim Blair, of maintenance business SICC Services, earlier in the day told the parliamentary committee many sewage plants around the state were at breaking point.
He said it was through good luck nothing disastrous had happened yet.
Mr Brewster said many issues that were raised by Mr Blair in the hearing had no basis in fact.
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