The discovery of Per and Polyfluoroalkyl Substances (PFAS) in soil on the site of the West Gate Tunnel has led to significant delays and costs.28 The project will now be delivered at least one year later than originally planned, in 2023 at the earliest.29 Delays in work have also led to many lay-offs.30
At issue is who is responsible for dealing with the contamination. Under the contracts, Transurban generally carries the risk of dealing with any existing contamination it disturbs during construction.31 Transurban also carries the risks of complying with planning approvals, of construction and design, and of 'a general change in law'. The Government carries the risk of a 'project specific change in law or change in policy', and the two parties share the risk for unforeseeable or 'force majeure' events.32
Proceedings have commenced between Transurban and the building consortium of CPB and John Holland over the additional costs incurred as a result of PFAS contamination, estimated at $1 billion.33 The building consortium has claimed the soil issue is an unforeseeable circumstance that makes it impossible to fulfil the terms of a contract. If this claim is found valid, it would enable the termination of its contract with Transurban. Transurban has indicated it may seek to terminate its contract with the Government on the same grounds of force majeure.34
In September 2020, the Environmental Protection Authority approved Environment Management Plans for two landfill sites in outer Melbourne to receive soil from the West Gate Tunnel Project.35
included the Monash Freeway Upgrade. The Victorian Auditor-General's Office (VAGO) noted that the inclusion of the Monash Freeway Upgrade in the calculation was inconsistent with the state Department of Treasury and Finance guidelines on separate business cases: VAGO (2019a, p. 43).
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28. Johnston et al (2019).
29. Rooney (2020a).
30. Rooney (2020b).
31. Treasurer of Victoria and Transurban (2017, Clause 7.2)
32. Victorian Government (2017, pp. 19-22)
33. Wiggins (2020a).
34. Jacks and Lucas (2020).
35. Terzon (2020).