16/03/2010 - 15:41

Salta packs up at Raine Square

16/03/2010 - 15:41

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Salta Constructions has commenced winding down its operations at Raine Square after spending the past three weeks trying in vain to negotiate a settlement with project developer Saracen Properties.

Salta packs up at Raine Square

Salta Constructions has commenced winding down its operations at Raine Square after spending the past three weeks trying in vain to negotiate a settlement with project developer Saracen Properties.

Its withdrawal leaves Westgem Investments, a company under the Saracen Properties umbrella, to find a replacement builder to complete the project.

Salta terminated its contract for the construction of Raine Square on February 25, citing a dispute over variations to the lead builders' contract.

The Raine Square site has been shut down for over a month, after Salta ordered its workers off the job on February 8.

In a statement released today, Salta said it had always been the company's wish to complete the project and had maintained its infrastructure in place in the hope of recommencing work under a new arrangement.

According to the statement, Salta has provided various extensions to the timeframe for reaching a resolution, but the final extension date expired on Friday.

It is understood the frontrunners to take on the remaining $60 million of base build work at Raine Square are Diploma Group, Arccon Constructions and Broad Constructions.

All three builders declined to comment when contacted by WA Business News.

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