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Australia: Melbourne metro Tunnel faces cost blowout on early construction work, watchdog reveals
Melbourne metro construction costs are already 31% over in the early phases of project. 31%!
So far $476 million, was approved but the expected expenditure is $625,5 million!
For the total cost of the metro project $11 billion was forecast. So, if you apply the 31% cost overrun to the whole project....
Interesting read as an example of how tunnel projects can go wrong:
The Contractor which switched off the Tunnel Boring Machines, the Cross Yarra Partnership was awarded the main tunnelling contract in 2017 after a tender process.
The consortium comprises companies John Holland, LendLease, Bouygues Construction and Capella Capital.
- Premier Daniel Andrews warns the Cross Yarra Partnership consortium they could also end up in court to enforce the contract they signed to build the tunnel.The consortium - which includes companies John Holland, LendLease, Bouygues Construction and Capella Capital - shut down their two boring machines yesterday as a dispute over costs escalated.
Following the stand-off, the contractors budge and Metro Tunnel construction to get back on track.
But it ain't over yet.
The tunnel boring machines digging the $11 billion Metro Tunnel project under central Melbourne will resume work on Thursday evening, but a deal is yet to be struck on who would help pay for a multibillion-dollar cost blowout.
The project's Cross Yarra Partnership consortium switched off two TBMs on Monday morning, as the builders argued with the Andrews government over the blowout, which could be up to $3 billion.
Late design changes to the #Melbourne Metro Tunnel could see the cost of the project soar even higher than its $3 billion budget blowout, with the opposition calling on the Auditor-General to investigate.
cover tunnel photo by: Matt Brown from London, England / CC BY
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Results of #Melbourne Metro cost and schedule blowout surface as serious frictions between the government and the contractor.
Contractor switches off the 2 TBMs over the weekend...
- Tunnelling work stopped between North Melbourne and Kensington at the weekend
- It follows warnings in June the tunnel project was already $150 million over budget. The consortium building the Metro Tunnel project, Cross Yarra Partnership (CYP), has been seeking additional funding from the state, with sources saying the request is as high as $2 billion.
- The political angle: The project, a key 2014 election promise from the Government, is contracted to be finished by 2025
https://www.abc.net.au/news/2019-12-09/melbourne-metro-tunnel-project-grinds-to-halt-amid-dispute/11779986
#Australia #CrossYarraPartnership #CYP #ProjectManagement #MelbourneMetro
Melbourne's Metro Tunnel project grinds to a halt amid dispute over cost blowouts
www.abc.net.auTunnelling stops on Premier Daniel Andrews's signature Melbourne rail project amid growing tensions between the builder and the Government over deadlines and cost blowouts.