We note that at the time of writing, the cost of the redevelopment was far from settled. Ongoing negotiations between the RTA and CCM about two disputed items could see the cost increase by more than $20 million. See Exhibit 3.2.
Exhibit 3.2: Value of disputed work for William and Park Streets | |||
Disputed item (All figures in $million) | RTA's estimate (at 20/1/06) | CCM's estimate (2 items, totalled) | Disputed amount |
Park and William Streets -construction | $9.1 | $30.6 | $21.5 |
Source: RTA advice to the Audit Office, May 2006 | |||
It is not clear how the RTA would cover any further costs, except from a remaining amount from the upfront payment. In theory, the RTA could negotiate a Second Amendment Deed, and again pass the costs on to motorists using the CCT. The Premier has accepted the Richmond Report recommendation to abandon 'the policy of motorway procurement at no cost to Government'. So, if this cost does blow out, the RTA is more likely to request an additional budget allocation from Cabinet.