On 27 August 2002, the concessionaire contracted the developer to design and construct the station. Construction progressed slowly and it became apparent to the SCSA that the milestones in the SDA would not be met by the developer7. Figure 3D outlines the factors that contributed to the delays.
Figure 3D Factors contributing to the delays in construction
Contributing factors |
The unique and complex design of the station roof. |
Logistical and stakeholder interface issues arising due to construction activity occurring While the station remained fully operational. |
Interpretation issues related to the project scope. |
Source: Victorian Auditor-General's Office analysis.
By late 2004, the developer had publicly announced its forecast loss on the project of $122.6 million, and was beginning to make significant compensation claims, primarily against the State and to a lesser extent against the concessionaire.
The SCSA undertook a lengthy negotiation process with the concessionaire and the developer to settle the claims. On 31 July 2006, the global settlement agreement was finalised and the principal construction works were completed.
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7 We reported on this delay in Report of the Auditor-General on the Finances of the State of Victoria, 2003-04.