MAJOR CLAIMS UPDATE
The Gautrain Delay and Disruption claim is expected to be settled during 2016 and the legal process is progressing.
An arbitration award has been made in the Gautrain water ingress dispute between Gauteng Province and the Bombela Concession Company. The Tribunal supported Province’s interpretation of the water ingress specification for the amount of ground water contractually allowed to drain into the Gautrain tunnel and ruled that in certain parts of the tunnel the non-compliance with specification could be settled through financial compensation. In other parts (sections between Park Station and Rosebank Station) additional works by the Bombela Civil Joint Venture (of which Murray & Roberts has a 45% shareholding) would be required to meet the specification.
A panel of technical experts and design consultants has been appointed to design a solution to the water ingress and the Bombela Civil Joint Venture should be in a position towards September 2014 to have a reasonably accurate view of the potential cost and other implications of any remedial works to the Park and Rosebank station hubs.
Gorgon Pioneer Materials Offloading Facility (GPMOF)
As previously reported, the merits of the design change claim on GPMOF in Australia was ruled in Murray & Roberts’ favour and the arbitration on the claim quantum is now underway and progressing well. At a recent Points of Claim hearing, the method adopted by Murray & Roberts to quantify the design change claim value was accepted and it is expected that the quantum of this claim will be determined by December 2014. There are also several other claims on this project that need to be resolved.
Dubai International Airport
The arbitration for the Dubai International Airport claim continues to be challenging and frustrating. However, the parties are exploring the potential of an alternative settlement mechanism to the legal process of arbitration.