Malaysian steel contract now water under the bridge

28 June, 2017

CCIWA welcomes a move to open up steel fabrication work of the Swan River pedestrian bridge to local businesses after York Rizzani Joint Venture terminated its subcontract with the Malaysian firm originally subcontracted.

The steel deck and arch components of the bridge were being fabricated in Malaysia after York Rizzani subcontracted the work to a Toyota Tsusho entity.

Originally the bridge was due to be completed by the end of 2016, but it was plagued by delays arising from protracted legal battles and missed deadlines.

None of the arches have yet arrived despite numerous assurances.

Following continued disputes, York Rizzani terminated its subcontract with Toyota Tsusho.

The State Government has spoken with York Rizzani over a series of meetings last week, to gain more control over a timely delivery of the project.

Under the renegotiated contract, claims arising from contract variations made under the previous State Government have been settled, a new target completion date of March 2018 will be set, and meaningful financial disincentives for late completion will apply.

Premier Mark McGowan says the renegotiated contract gives them the best chance to have the bridge delivered in time to coincide with the opening events of the stadium in March.

The new program of steel fabrication works by the intended local subcontractor is being submitted for appropriate due diligence by quantity surveyors and fabrication experts.

A revised cost is being set for the entire project comprising of $80.4 million, with an extra $2.6 million payable once the target completion date is met.

The former Liberal-National Government had estimated the bridge would cost $50 million and be finished by mid-2017.

Building the bridge locally is expected to create about 250 local jobs.

CCIWA Chief Executive Deidre Willmott says the State Government’s decision to have the bridge built locally is a strong vote of confidence in WA industry that will boost the state’s economy and create jobs.

“CCI believes it is critical that WA SMEs have full, fair and reasonable access to contract opportunities – CCI and the WA business community therefore welcome the State Government’s decision to build the bridge locally, boost local industry and create 250 jobs for WA workers,” she says.

“While it is important that WA businesses can gain access to supply chain opportunities, it is equally critical this is achieved without onerous regulations being imposed on major project contractors – additional red tape on industry could deter new investment, slow down project development, hinder economic growth and undermine new job creation.”

Wilmott says CCI continues to look forward to working with the State Government to make sure local content outcomes are effective and efficient for all types of businesses across the economy.

A State Government spokesperson did not confirm who they were considering for the work but in April York Civil managing director Dominic Vieceli said the York Civil-Rizzani de Eccher joint venture would reach out to the WA market for the manufacture of the steel deck component of the bridge.

“We’ve identified six local fabricators who have the capabilities: AME, AGC, Civmec, Fremantle Steel Fabrication, Pacific Industrial Company and RCR Tomlinson,” he said.

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