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Home / New Zealand

Covid-19 coronavirus: Impacts on major projects in Christchurch costing council $6.5m

Devon Bolger
By Devon Bolger
Digital producer, Christchurch, NZ Herald·NZ Herald·
1 Mar, 2021 06:48 PM2 mins to read

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Contractor claims for changes to the contract of the Ōtakaro Avon River Corridor project have been finalised. Photo / Supplied

Contractor claims for changes to the contract of the Ōtakaro Avon River Corridor project have been finalised. Photo / Supplied

Changes to the delivery of Christchurch's major projects due to Covid-19 have cost the Christchurch City Council approximately $6.5 million to date.

As of January this year, 72 per cent of the total claims by contractors of the projects have been finalised.

If a Covid-19 directive leads to a change in the cost to the contractor, it can trigger a variation to the contract, a Christchurch City Council report said.

Additional costs may include demobilisation and remobilisation, site security, direct labour and on-site/off-site overheads.

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Variations are reviewed and negotiated between the council and the contractor, and consider factors such as whether the wage subsidy was available for them.

The claims are across 46 projects. Transport makes up 37 per cent, community 2 per cent, and three waters projects make up 61 per cent.

Some of the key projects where claims have been finalised are:

• Pioneer recreation and Sport centre roof replacement

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• Ōtakaro Avon River Corridor

• Riccarton Rd bus priority

• St Albans Community Centre

• Opawa Public Library rebuild

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