Aug 30, 2012
No quick fix for Gautrain ‘megaclaim’ as Bombela, govt gather global expertsBack
Construction|Design|Flow|Gautrain|Gautrain Rapid Rail|Murray & Roberts|PROJECT|Rosebank|System|Water|Australia|Gautrain|Flow|Gautrain|Gautrain|Henry Laas|Rail|Water
© Reuse this
Murray & Roberts is a member of the Bombela consortium, which built, and was now operating the R26.4-billion Gautrain rapid rail system on government's behalf.
This case related to the volume of water ingress in the tunnel between the Rosebank and Park stations, which had delayed the opening of this leg of the route from August last year to June this year.
Laas said it was “common knowledge” that the Gauteng government and Bombela viewed the water matter differently.
Even through arbitration on the matter was scheduled for September, Laas only expected a ruling at the end of this year.
“We are confident we have a reasonable case.”
However, he warned that the outcome was not certain, and that there could still be “a potential cost risk to Murray & Roberts”.
Another major project where Murray & Roberts had to turn to arbitration in recent months, had been the troubled Gorgon Pioneer material offloading facility (GPMOF), in Australia.
The cash outlay of more than R2-billion on the project over the past 16 months represented one of the largest single cash losses for the company in recent times.
However, Laas said on Thursday that arbitration rulings on the first three disputes over the GPMOF, relating primarily to scope changes from the tendered design, had been awarded in its favour.
He said the quantum of restitution would be determined through further arbitration, and that the company could “see cash flow” during November or December 2012.
Laas said he expected more disputes on the GPMOF project to be ruled in Murray & Roberts’ favour now that the company has won the design dispute.
“What we built was different from what we tendered,” he noted.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Other Construction News
Recent Research Reports
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
This Week's Magazine
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments. In many urban and rural municipalities, the state of infrastructure has been...