MetroRail well managed, report

A RECENT Auditor General’s report has found that the Public Transport Authority is fulfilling its contract management role of the New MetroRail City Section Project (Package F).The report found that, despite the contract’s fixed-price nature, the final price paid will likely be higher as the contract provides for rise-and fall, scope variations and other contractor claims, and that it is not possible at this stage to accurately estimate the final price. Further, the report says high value claims (in excess of $1 million each) on the contract are likely, and that key construction was behind the extended completion date, which could indicate further delays. Planning and Infrastructure Minister Alannah MacTiernan said she welcomed the Auditor General’s finding that the responsibility, along with most of the cost risk, for the design and construction contract rested with the contractor.Ms MacTiernan said timetable and cost issues identified by the Auditor General were already being closely monitored by the Public Transport Authority contract team.“As part of this program, in April this year I announced a revised timetable and budget, which saw the city section’s completion date extended to December 2006 and the project’s contingency sum lifted by $45 million,” she said. “We are confident that existing timetables and budgets are on target and a further review will take place in the lead up to next year’s budget.”

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