Long-running negotiations between CPB Contractors and the state government have resulted in the CIMIC Group subsidiary signing a $47.9 million contract for the New Lord St project at Ellenbrook.
This comes six months after the McGowan government said it was renegotiating a contract previously awarded to CPB for the Ellenbrook bus rapid transit project.
The bus rapid transit was the Barnett government’s preferred solution for the area’s transport problems but was scrapped by the McGowan government, triggering the negotiations.
A spokesperson for Transport Minister Rita Saffioti said a deed of variation was signed with CPB in September, and the revised value of the contract was $47.9 million.
The overall cost of New Lord St is $57 million.
By comparison, the bus rapid transit was budgeted to cost a total of $55 million.
Within that total, CPB signed a $41.9 million contract, according to the government tenders web site.
This is not the first time CPB has won new contracts following project cancellations.
The CPB-led Roe 8 alliance was awarded three roads projects worth $276 million earlier this year to compensate for cancellation of the Perth Freight Link.
Ms Saffioti announced last week that preparatory works were under way for New Lord St, which is a seven-kilometre dual carriageway.
However, the announcement did not name the successful contractor.
Heavy construction is due to begin early in the new year, with the project scheduled for completion in October 2018.
The project will provide a dual carriageway between Reid Highway and Gnangara Road.
It also includes roundabouts at the intersections of Park Street and Youle-Dean Road, a shared path to improve access to Whiteman Park, a new bus station and bus priority measures.
The upgrade will relieve pressure on the existing Lord Street, a single carriageway used by about 14,000 vehicles a day.
The McGowan government’s plan for the area also includes its Metronet heavy rail line, which explains why it cancelled the bus rapid transit plan.