Metro Tunnel boring machines grind to a halt over cost blow out dispute
Premier Daniel Andrews has vowed to ensure the Metro Tunnel’s builders meet their contracts, after workers downed tools as a dispute over cost blowouts on the mega-project dramatically escalated.
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Premier Daniel Andrews has hit out at the builders who have stopped digging on the Metro Tunnel, vowing to ensure the companies meet their contracts.
“This is a pretty obvious tactic from some giant building companies who are very keen to get some more money out of Victorian taxpayers,” he said.
“We have a message for those building companies, these tactics will not work.
“We have a contract, and we expect the contract to be honoured.”
“That is not to say that big projects do not encounter issues from time to time.”
It comes as massive machines digging the $11 billion project are laying idle underground in a dramatic escalation of a dispute over cost blowouts on the mega-project.
In a shock move, workers were told to stop digging the twin 9km tunnels on Monday morning, sparking a stand-off which could continue for weeks — if not longer — as the consortium building the project ramps up the pressure on the Andrews Government.
The Herald Sun revealed last month a mediator was called in to sort out the messy fight about cost overruns, with industry speculation suggesting the builders could seek to claim as much as $3 billion.
While talks are continuing, it is understood Premier Daniel Andrews and his team are staring down the construction companies, even in the face of a potential court battle.
The tunnel is supposed to open in 2025 but the fight over costs threatens to delay progress on the government’s signature public transport project.
The two tunnel boring machines have so far travelled 540m and 281m from their starting points in North Melbourne.
After workers were pulled off on Monday, the machines were put on standby until a resolution can be reached.
Staff working on the project are believed to have been told they will receive training while the machines sit under the ground. They are then expected to take leave over Christmas, meaning the dispute will likely see delays on the project stretch into next year.
The builders are believed to have made an initial claim of $200 million to $300 million, as soaring material and labour costs hit projects across Australia’s eastern states.
A Rail Projects Victoria spokesman said the authority was working to have the project finished by 2025.
“Both machines have progressed well since launching earlier this year,” the spokesman said.
“Rail Projects Victoria is in ongoing discussions with Cross Yarra Partnership (CYP) on all aspects of the project and is focused on achieving the best outcomes as works progress.
“To date, CYP has not provided RPV with any specific detail of proposed changes to its tunnelling program.”
The consortium refused to comment, while a government spokeswoman said they expected the builders to deliver on their contract and finish the project by 2025.
Opposition Leader Michael O’Brien said the government had “completely lost control” of major projects including the Metro Tunnel, and warned taxpayers would foot the bill for mounting cost overruns.
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“This is a government that is so keen to get the headline, it never meets a deadline,” he said.
Mr Andrews also said today delays on another key project, the West Gate Tunnel, were unrelated.
“There are a range of separate issues that relate to, I think, a well understood challenge around PFAS and some contaminated soil,” he said.
“It’s a total abundance of caution policy that we’ve put in place.
“There’s some global uncertainty about PFAS at the certain levels we’re talking about.”