http://www.thewest.com.au/default.aspx? ... tID=113619
$110m Arena blowout
17th December 2008, 6:00 WST
Contractor BGC is expected to demand about $110 million in cost overruns on the Arena indoor stadium next week, taking the total cost of the project to about $425 million.
Sources say BGC will demand the extra money over unexpected costs partly because of engineering difficulties with the underground carpark, and it will also change the estimated completion date from late 2010 to May 2011.
Office of Strategic Projects executive director Richard Mann confirmed the contractor had told his office of major cost overruns “very cagily, without being precise” but had yet to confirm a price.
He said he could not confirm the figure of $110 million until the written claim was submitted to the Department of Housing and Works, which is expected to be next week. He confirmed the contractor had informed the Government recently of a time delay “well into 2011”, which would mean the Arena would not be available to host the Hopman Cup in 2011 as planned.
But he said the Government still believed it would be possible to finish the project by late 2010. There were negotiations for a different venue to stage the event in 2011 if it was not.
Spokesmen for both Burswood Resort and the Hopman Cup tournament said they had not had notification of the potential change in plans and were not expecting to host the tennis event at Burswood in 2011.
“We will turn contingency into reality,” Mr Mann said.
He said the Government would negotiate to find out how much of the blowout the contractor would pay and how much taxpayers would cover.
BGC declined to comment.