Kingsford Smith Drive cost delay revealed on Australian Stock Exchange

Costs for Kingsford Smith Drive have blown out by a huge sum according to the builder and Brisbane’s Lord Mayor suspects ‘very little’ will be left of the project’s contingency.

The Kingsford Smith Drive contract has risen to $500.6 million according to builder Lendlease.

COSTS for Kingsford Smith Drive have blown out by at least $47 million according to the builder and Brisbane’s Lord Mayor suspects it could go higher.

Lendlease announced on the Australian Stock Exchange that the value of its contract to build the road project was $500.6 million, an increase from the previous $453 million figure.

The council has always maintained the contract for Kingsford Smith Drive is $650 million but that includes the contingency for delays and problems.

WHEN WILL KSD BE FINISHED?

DRIVERS STEER CLEAR OF ROADWORKS

MAJOR ROAD WORK UNDER BUDGET

Opposition leader Peter Cumming raised the announcement at the Brisbane City Council meeting on Tuesday.

“Council contracts for the provision of infrastructure contain contingency payments that can be returned as a saving to ratepayers if the contract is concluded on time and on budget,” he said.

“Are Brisbane ratepayers picking up the bill for what, according to these publicly available documents, appears to be a $47 million blowout in this troubled project?”

Lord Mayor Graham Quirk said: “When it comes to Kingsford Smith Drive, I suspect there will be very little, if any, by way of contingency saved.”

Lord Mayor Graham Quirk and Infrastructure chairman Amanda Cooper pictured on the day they announced the delays on Kingsford Smith Drive and that the Riverwalk would soon open. Picture: Ellen-Maree Elliot

He said he had been clear with the issues that had delayed Kingsford Smith Drive and acknowledged the Australian Stock Exchange announcement.

“As I’ve said from the very outset this is a $650 million project at Kingsford Smith Drive and nothing has changed in relation to that,” he said.

“There are on projects, some projects, there are contingencies that are spent and in other projects there are contingencies saved.”

He said the project was “still a great project” that would be delivers for $650 million.

“The very reason you have contingencies in projects is because there can be unexpected costs within a project,” he said.

Kingsford Smith Drive upgrade works from earlier in the project. Picture: Paul Spottiswood

He said the pedestrian and cycling pathway along the river was already open and the stretch of Kingsford Smith Drive from Harbour Rd headed to the Gateway Arterial would open soon.

Opposition infrastructure spokesman Steve Griffiths said not only had Lendlease overrun by $47 million but the Lord Mayor had warned there was more to come.

“That’s $47 million ratepayers won’t get back with worse to come. The Lord Mayor admitted we’ve hit the worst-case scenario and the contingency fund would be all but spent,” he said.

He said he knew the total figure that would be spent but was “gagged” from telling ratepayers due to commercial-in-confidence.