The Company is CPB.
It is interesting to consider two projects which are being constructed by CPB in this City. The Convention Centre is being constructed by them at present. The story on the streets is that this project has now blown out by a further $50m. That makes its cost $550m. I heard recently from somebody involved in construction in the North Island that the building is to have some art work, not made in this City, added to the outside of the building. This will involve removing some of the exterior of the building.
CPB have also been awarded the contract for the Metro Sports Centre. Remember the article above where it was reported that the Christchurch Public Hospital construction is 3 years late. Guess which firm has the contract for this project? Yes, CPB.
Newsroom reported last week about a project CPB is involved with in Melbourne.
Melbourne’s multi-billion-dollar West Gate Tunnel PPP roading project – which also involves CPB – had seen its deadline extended out by a year, workers served redundancy notices, and a force majeure clause exercised.
Then Newsroom asked Victoria’s Minister for Transport Infrastructure Jacinta Allan about CPB’s behaviour on that contract and her reply was that it had been “disgraceful“.
“While businesses across Australia are going to extraordinary lengths to keep staff on – here in Victoria we’ve seen Transurban’s builders CPB and John Holland sacking people over a petty dispute.”
“We won’t be held ransom by construction companies especially when we have a lot of work here on offer.”
My concerns were raised when I realised, that the company I was railing against over Transmission Gully over the past few weeks, was CPB. Let us reflect on their links to this City; including two massively blown out projects. Here’s what Newsroom wrote about Transmission Gully:
A joint venture building Transmission Gully has presented NZTA with a take it or leave it deal extending the road’s opening date out nearly a decade after the PPP was signed.
Sources told Newsroom CPB Contractors has laid an ultimatum at the feet of the Government: extend the completion date out to 2023, remove warranty obligations on the road, make a lump sum payment (alleged to be greater than $200m), and move the whole agreement to a ‘charge-up’ contract.
If the terms put forth by CPB are accepted, the road will open nine years after the PPP agreement behind its construction was signed and well after its initial expected opening date of April 2020.
The proposed conditions attached to the new deal would leave taxpayers and road users in a vulnerable position if problems with the road reported by people close to the project prove to be correct.
Newsroom reported CPB had leaned on a force majeure exit clause to present NZTA with a ‘take it or leave it’ deal to extend the completion date of Transmission Gully out to 2023, remove warranty obligations on the road, make a lump sum payment (alleged to be greater than $200m), and move the whole agreement to a ‘charge-up’ contract.
Road Transport Forum Chief Executive Nick Leggett said the proposed deal could add an extra $500m to the price of the road if it was accepted by NZTA.
From Newsroom https://www.newsroom.co.nz/1249229/transmission-gully-2023-take-it-or-leave-it?utm_source=Friends+of+the+Newsroom&utm_campaign=d5a84de9cb-Daily+Briefing+29.6.20&utm_medium=email&utm_term=0_71de5c4b35-d5a84de9cb-97862399
So, these guys have forced a “force majeure” in both Wellington and Melbourne. When can we expect one in Christchurch? I wondered what a Force majeure was. Here is what Uncle Google told me:
Force majeure is a common clause in contracts that essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, epidemic or an event described by the legal term act of God, prevents one or both parties from fulfilling their obligations under the contract. In practice, most force majeure clauses do not excuse a party’s non-performance entirely, but only suspend it for the duration of the force majeure.
Otakaro Ltd, has remained a secretive organisation under both Minister Brownlee and Minister Woods. If the media is performing its task properly CPB’s should be called to account, as should Otakaro. Gosh, I just looked out my window and a pig flew past…
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