The McGowan Labor Government will have the Swan River Pedestrian Bridge built locally, creating about 250 local jobs in Western Australia.
- Swan River Pedestrian Bridge to be built locally, maximising WA jobs
- New McGowan Government approach will see bridge components built in Perth
- About 250 local jobs to be created for Western Australians
- New completion target date of March 2018 set with financial disincentives for delays
The steel deck and arch components of the bridge were being fabricated in Malaysia after head contractor, York Rizzani Joint Venture subcontracted the fabrication to a Toyota Tsusho entity.
Originally the bridge was due to be completed by the end of 2016, but it was plagued by delays, with the Toyota Tsusho entity repeatedly failing to meet delivery timeframes. None of the arches have yet arrived despite numerous assurances.
Following continued disputes, York Rizzani Joint Venture terminated its subcontract with Toyota Tsusho. York Rizzani Joint Venture retains liability for any claims from Toyota Tsusho in respect to that subcontract.
The McGowan Government has engaged with the head contractor over a series of meetings late this week, to gain more control over a timely delivery of the project after the previous approach left the State virtually powerless.
Under the renegotiated contract, claims arising from contract variations made under the previous Liberal National Government have been settled, a new target completion date of March 2018 will be set, and meaningful financial disincentives for late completion will apply.
The new program of steel fabrication works by the intended local subcontractor is being submitted for appropriate due diligence by quantity surveyors and fabrication experts.
A revised cost is being set for the entire project comprising of $80.4 million, with an extra $2.6 million payable once the target completion date is met. New site assembly costs will also be incurred.
The State Government's new agreement has been negotiated by Main Roads Western Australia with the State Solicitor's Office, in consultation with Treasury's Office of Strategic Projects.
Comments attributed to Premier Mark McGowan:
"This is a significant win for Western Australia and the best outcome for our local economy.
"We're securing new local jobs and have renegotiated a complex contract to give us the best chance to have the bridge delivered in time to coincide with the opening events of the stadium.
"My Government was elected to put WA jobs first and that's exactly what's happening here."
Comments attributed to Transport Minister Rita Saffioti:
"The previous contract left the State Government virtually powerless over local jobs, quality and completion time for the bridge.
"While this situation we are in is not ideal, we are cautiously optimistic about delivering the bridge in March.
"Having the main bridge components built overseas was always the wrong approach for Western Australians, but this is just another example of the mess we have had to clean up.
"We're boosting local jobs and implementing a credible plan going forward."