The arbitration tribunal ruling on the Bombela Concession Company’s (BCC’s) Gautrain Sandton Station cavern claim has increased it provisional quantum award of R354-million, as set in March, to R624-million.
The award is in relation to a claim lodged by the Bombela Civil Joint Venture (BCJV), through the BCC, against the Gauteng provincial government for the costs incurred as a result of design changes to the Gautrain project.
The construction of the Sandton station was tendered as a cut-and-cover design; however, this was subsequently changed under a variation order issued by the Gauteng province to a cavern design, which attracted additional costs.
The BCJV was responsible for the design and construction of the Gautrain system. The shareholders of the BCJV were Murray & Roberts (45%), Bouygues (45%) and SPG (10%).
Construction group Murray & Roberts notes that the Gauteng provincial govern- ment has instituted High Court proceedings to review the quantum award.
The BCC is opposing the application for review.
Murray & Roberts adds that the BCJV had presented a claim to the Gauteng government for the additional costs incurred following a design change to the Gautrain bridges over John Vorster and Jean avenues, in Centurion.
The tribunal ruled in favour of the BCJV on May 4, with the quantum of the claim to be determined in October.
After “thorough legal review”, the Gauteng provincial government is of the view that there are key aspects of the award that “warrant further steps in the dispute resolution process”, which is why it has approached the High Court for a review of the decision, says Gautrain Management Agency (GMA) acting CEO William Dachs.
He notes that the province is seeking legal advice on the cantilever bridges award.
The GMA is an agency of the Gauteng government.
Construction work on the Gautrain system wrapped up in 2012.