21/04/2010 - 15:48

Raine Square builder deal close

21/04/2010 - 15:48

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Saracen Properties is expected to announce a replacement builder for the $500 million retail and office development Raine Square within the next two weeks.

Raine Square builder deal close

Saracen Properties is expected to announce a replacement builder for the $500 million retail and office development Raine Square within the next two weeks.

Saracen Properties managing director Luke Saraceni said at a WA Business News breakfast this morning the tender process closes on Friday, and the search had been narrowed to two builders.

It has previously been reported the shortlist was down to three Perth-based builders; Arccon Constructions, Broad Constructions and Diploma Group.

Mr Saraceni has been forced to appoint another builder after the original lead builder, Melbourne-based Salta, walked off the job on February 8 over a contract dispute.

Salta terminated its contract for the construction of Raine Square on February 25, and commenced winding down its operations March 16.

Despite the saga dragging on over two months, Mr Saraceni was upbeat, and confident work would resume on the site shortly.

He said the most difficult aspect of appointing a new builder was dealing with regulatory aspects and multiple risk management divisions at different banks.

"That's been the hardest thing because when a situation like that occurs everyone wants to have an input, so things that should normally take a week take three weeks," Mr Saraceni said.

"That's been the hardest thing, the extra work involved in actually appointing a builder.

"Tenders close on Friday, we'll have a builder appointed within a week or so after that, and they'll probably start on site, if we had our way, a few days after that, but by the time we get through the process another two weeks after that."

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