❓ Mrs. Hodson-Thomas asks about escape clauses in South West Metropolitan Railway contracts. The answer clarifies these are termination clauses, outlines conditions for their use, and argues against project cancellation due to financial implications and progress already made.
AnsweredQoN 2822Legislative Assembly
QuestionView source ↗
(b) if not, why not; and (c) if there are escape clauses coded into the SWMR contracts, what are those clauses, and how could they be implemented?
(c) if there are escape clauses coded into the SWMR contracts, what are those clauses, and how could they be implemented?
- Package A: PTA Contract 03/005; RailLink Joint Venture - Package E: MRWA Contract 367/02; Leighton Contractors Pty Ltd - Package F: PTA Contract 27/03; Leighton Contractors Pty Ltd [fully sub-contracted to Leighton Kumagai Joint Venture] - Package G: PTA Contract 135/02; Union Switch and Signal In answer to the question, the term “escape” clause is understood to refer to a termination clause. Part (c) refers to “escape” clauses being “coded” into contracts. Termination clauses are included openly and transparently into the contracts and are not “coded”. The answer to the question is: (a) Termination clauses are included in all of the contracts. (b) Not applicable. (c) In all four contracts, the contract permits termination in the event of default by the Contractor or the Principal. In addition, in contracts 03/005 and 135/02 there is provision for termination by the Principal without giving cause by giving the Contractor 30 days notice. In invoking that clause, compensation would be payable. The cost of abandoning construction would be in excess of $1billion if the Opposition followed through on its plans to cancel construction of the New MetroRail Project. By mid-February 2005 - at the time of the next election - there would already be a significant portion of the Gallop Government's rail vision for the 21st century in place. The northern suburbs rail extension would be completed. The Thornlie Spur and the up-grades of the Kenwick line would also be finalised. Some 70 new rail cars would be bought, the Nowergup Depot built and substantial progress on components of the southern rail project would be in place, amounting to $665million. Given the cost of paying out contracts would be $200-$300million, then we would need to provide at least $150million on bus projects for southern suburbs commuters. It would cost the Coalition $1 billion not to build the rail, and $1.5 billion for the Government to build it. The latter is by far better value for money.
In answer to the question, the term “escape” clause is understood to refer to a termination clause. Part (c) refers to “escape” clauses being “coded” into contracts. Termination clauses are included openly and transparently into the contracts and are not “coded”. The answer to the question is: (a) Termination clauses are included in all of the contracts. (b) Not applicable. (c) In all four contracts, the contract permits termination in the event of default by the Contractor or the Principal. In addition, in contracts 03/005 and 135/02 there is provision for termination by the Principal without giving cause by giving the Contractor 30 days notice. In invoking that clause, compensation would be payable. The cost of abandoning construction would be in excess of $1billion if the Opposition followed through on its plans to cancel construction of the New MetroRail Project. By mid-February 2005 - at the time of the next election - there would already be a significant portion of the Gallop Government's rail vision for the 21st century in place. The northern suburbs rail extension would be completed. The Thornlie Spur and the up-grades of the Kenwick line would also be finalised. Some 70 new rail cars would be bought, the Nowergup Depot built and substantial progress on components of the southern rail project would be in place, amounting to $665million. Given the cost of paying out contracts would be $200-$300million, then we would need to provide at least $150million on bus projects for southern suburbs commuters. It would cost the Coalition $1 billion not to build the rail, and $1.5 billion for the Government to build it. The latter is by far better value for money.
(a) Termination clauses are included in all of the contracts. (b) Not applicable. (c) In all four contracts, the contract permits termination in the event of default by the Contractor or the Principal. In addition, in contracts 03/005 and 135/02 there is provision for termination by the Principal without giving cause by giving the Contractor 30 days notice. In invoking that clause, compensation would be payable. The cost of abandoning construction would be in excess of $1billion if the Opposition followed through on its plans to cancel construction of the New MetroRail Project. By mid-February 2005 - at the time of the next election - there would already be a significant portion of the Gallop Government's rail vision for the 21st century in place. The northern suburbs rail extension would be completed. The Thornlie Spur and the up-grades of the Kenwick line would also be finalised. Some 70 new rail cars would be bought, the Nowergup Depot built and substantial progress on components of the southern rail project would be in place, amounting to $665million. Given the cost of paying out contracts would be $200-$300million, then we would need to provide at least $150million on bus projects for southern suburbs commuters. It would cost the Coalition $1 billion not to build the rail, and $1.5 billion for the Government to build it. The latter is by far better value for money.
By mid-February 2005 - at the time of the next election - there would already be a significant portion of the Gallop Government's rail vision for the 21st century in place. The northern suburbs rail extension would be completed. The Thornlie Spur and the up-grades of the Kenwick line would also be finalised. Some 70 new rail cars would be bought, the Nowergup Depot built and substantial progress on components of the southern rail project would be in place, amounting to $665million. Given the cost of paying out contracts would be $200-$300million, then we would need to provide at least $150million on bus projects for southern suburbs commuters. It would cost the Coalition $1 billion not to build the rail, and $1.5 billion for the Government to build it. The latter is by far better value for money.
The northern suburbs rail extension would be completed. The Thornlie Spur and the up-grades of the Kenwick line would also be finalised. Some 70 new rail cars would be bought, the Nowergup Depot built and substantial progress on components of the southern rail project would be in place, amounting to $665million. Given the cost of paying out contracts would be $200-$300million, then we would need to provide at least $150million on bus projects for southern suburbs commuters. It would cost the Coalition $1 billion not to build the rail, and $1.5 billion for the Government to build it. The latter is by far better value for money.
Some 70 new rail cars would be bought, the Nowergup Depot built and substantial progress on components of the southern rail project would be in place, amounting to $665million. Given the cost of paying out contracts would be $200-$300million, then we would need to provide at least $150million on bus projects for southern suburbs commuters. It would cost the Coalition $1 billion not to build the rail, and $1.5 billion for the Government to build it. The latter is by far better value for money.
Given the cost of paying out contracts would be $200-$300million, then we would need to provide at least $150million on bus projects for southern suburbs commuters. It would cost the Coalition $1 billion not to build the rail, and $1.5 billion for the Government to build it. The latter is by far better value for money.
It would cost the Coalition $1 billion not to build the rail, and $1.5 billion for the Government to build it. The latter is by far better value for money.
(c) if there are escape clauses coded into the SWMR contracts, what are those clauses, and how could they be implemented?
- Package A: PTA Contract 03/005; RailLink Joint Venture - Package E: MRWA Contract 367/02; Leighton Contractors Pty Ltd - Package F: PTA Contract 27/03; Leighton Contractors Pty Ltd [fully sub-contracted to Leighton Kumagai Joint Venture] - Package G: PTA Contract 135/02; Union Switch and Signal In answer to the question, the term “escape” clause is understood to refer to a termination clause. Part (c) refers to “escape” clauses being “coded” into contracts. Termination clauses are included openly and transparently into the contracts and are not “coded”. The answer to the question is: (a) Termination clauses are included in all of the contracts. (b) Not applicable. (c) In all four contracts, the contract permits termination in the event of default by the Contractor or the Principal. In addition, in contracts 03/005 and 135/02 there is provision for termination by the Principal without giving cause by giving the Contractor 30 days notice. In invoking that clause, compensation would be payable. The cost of abandoning construction would be in excess of $1billion if the Opposition followed through on its plans to cancel construction of the New MetroRail Project. By mid-February 2005 - at the time of the next election - there would already be a significant portion of the Gallop Government's rail vision for the 21st century in place. The northern suburbs rail extension would be completed. The Thornlie Spur and the up-grades of the Kenwick line would also be finalised. Some 70 new rail cars would be bought, the Nowergup Depot built and substantial progress on components of the southern rail project would be in place, amounting to $665million. Given the cost of paying out contracts would be $200-$300million, then we would need to provide at least $150million on bus projects for southern suburbs commuters. It would cost the Coalition $1 billion not to build the rail, and $1.5 billion for the Government to build it. The latter is by far better value for money.
In answer to the question, the term “escape” clause is understood to refer to a termination clause. Part (c) refers to “escape” clauses being “coded” into contracts. Termination clauses are included openly and transparently into the contracts and are not “coded”. The answer to the question is: (a) Termination clauses are included in all of the contracts. (b) Not applicable. (c) In all four contracts, the contract permits termination in the event of default by the Contractor or the Principal. In addition, in contracts 03/005 and 135/02 there is provision for termination by the Principal without giving cause by giving the Contractor 30 days notice. In invoking that clause, compensation would be payable. The cost of abandoning construction would be in excess of $1billion if the Opposition followed through on its plans to cancel construction of the New MetroRail Project. By mid-February 2005 - at the time of the next election - there would already be a significant portion of the Gallop Government's rail vision for the 21st century in place. The northern suburbs rail extension would be completed. The Thornlie Spur and the up-grades of the Kenwick line would also be finalised. Some 70 new rail cars would be bought, the Nowergup Depot built and substantial progress on components of the southern rail project would be in place, amounting to $665million. Given the cost of paying out contracts would be $200-$300million, then we would need to provide at least $150million on bus projects for southern suburbs commuters. It would cost the Coalition $1 billion not to build the rail, and $1.5 billion for the Government to build it. The latter is by far better value for money.
(a) Termination clauses are included in all of the contracts. (b) Not applicable. (c) In all four contracts, the contract permits termination in the event of default by the Contractor or the Principal. In addition, in contracts 03/005 and 135/02 there is provision for termination by the Principal without giving cause by giving the Contractor 30 days notice. In invoking that clause, compensation would be payable. The cost of abandoning construction would be in excess of $1billion if the Opposition followed through on its plans to cancel construction of the New MetroRail Project. By mid-February 2005 - at the time of the next election - there would already be a significant portion of the Gallop Government's rail vision for the 21st century in place. The northern suburbs rail extension would be completed. The Thornlie Spur and the up-grades of the Kenwick line would also be finalised. Some 70 new rail cars would be bought, the Nowergup Depot built and substantial progress on components of the southern rail project would be in place, amounting to $665million. Given the cost of paying out contracts would be $200-$300million, then we would need to provide at least $150million on bus projects for southern suburbs commuters. It would cost the Coalition $1 billion not to build the rail, and $1.5 billion for the Government to build it. The latter is by far better value for money.
By mid-February 2005 - at the time of the next election - there would already be a significant portion of the Gallop Government's rail vision for the 21st century in place. The northern suburbs rail extension would be completed. The Thornlie Spur and the up-grades of the Kenwick line would also be finalised. Some 70 new rail cars would be bought, the Nowergup Depot built and substantial progress on components of the southern rail project would be in place, amounting to $665million. Given the cost of paying out contracts would be $200-$300million, then we would need to provide at least $150million on bus projects for southern suburbs commuters. It would cost the Coalition $1 billion not to build the rail, and $1.5 billion for the Government to build it. The latter is by far better value for money.
The northern suburbs rail extension would be completed. The Thornlie Spur and the up-grades of the Kenwick line would also be finalised. Some 70 new rail cars would be bought, the Nowergup Depot built and substantial progress on components of the southern rail project would be in place, amounting to $665million. Given the cost of paying out contracts would be $200-$300million, then we would need to provide at least $150million on bus projects for southern suburbs commuters. It would cost the Coalition $1 billion not to build the rail, and $1.5 billion for the Government to build it. The latter is by far better value for money.
Some 70 new rail cars would be bought, the Nowergup Depot built and substantial progress on components of the southern rail project would be in place, amounting to $665million. Given the cost of paying out contracts would be $200-$300million, then we would need to provide at least $150million on bus projects for southern suburbs commuters. It would cost the Coalition $1 billion not to build the rail, and $1.5 billion for the Government to build it. The latter is by far better value for money.
Given the cost of paying out contracts would be $200-$300million, then we would need to provide at least $150million on bus projects for southern suburbs commuters. It would cost the Coalition $1 billion not to build the rail, and $1.5 billion for the Government to build it. The latter is by far better value for money.
It would cost the Coalition $1 billion not to build the rail, and $1.5 billion for the Government to build it. The latter is by far better value for money.
AnswerView source ↗
Answered
22 June 2004
Responded by
Minister for Planning and Infrastructure
Response time
49 days
The New MetroRail Project contracts awarded to date for the South West Metropolitan Railway are:
- Package A: PTA Contract 03/005; RailLink Joint Venture
- Package E: MRWA Contract 367/02; Leighton Contractors Pty Ltd
- Package F: PTA Contract 27/03; Leighton Contractors Pty Ltd [fully sub-contracted to Leighton Kumagai Joint Venture]
- Package G: PTA Contract 135/02; Union Switch and Signal
In answer to the question, the term “escape” clause is understood to refer to a termination clause. Part (c) refers to “escape” clauses being “coded” into contracts. Termination clauses are included openly and transparently into the contracts and are not “coded”. The answer to the question is:
(a) Termination clauses are included in all of the contracts.
(b) Not applicable.
(c) In all four contracts, the contract permits termination in the event of default by the Contractor or the Principal. In addition, in contracts 03/005 and 135/02 there is provision for termination by the Principal without giving cause by giving the Contractor 30 days notice. In invoking that clause, compensation would be payable.
The cost of abandoning construction would be in excess of $1billion if the Opposition followed through on its plans to cancel construction of the New MetroRail Project.
By mid-February 2005 - at the time of the next election - there would already be a significant portion of the Gallop Government's rail vision for the 21st century in place.
The northern suburbs rail extension would be completed. The Thornlie Spur and the up-grades of the Kenwick line would also be finalised.
Some 70 new rail cars would be bought, the Nowergup Depot built and substantial progress on components of the southern rail project would be in place, amounting to $665million.
Given the cost of paying out contracts would be $200-$300million, then we would need to provide at least $150million on bus projects for southern suburbs commuters.
It would cost the Coalition $1 billion not to build the rail, and $1.5 billion for the Government to build it. The latter is by far better value for money.
- Package A: PTA Contract 03/005; RailLink Joint Venture
- Package E: MRWA Contract 367/02; Leighton Contractors Pty Ltd
- Package F: PTA Contract 27/03; Leighton Contractors Pty Ltd [fully sub-contracted to Leighton Kumagai Joint Venture]
- Package G: PTA Contract 135/02; Union Switch and Signal
In answer to the question, the term “escape” clause is understood to refer to a termination clause. Part (c) refers to “escape” clauses being “coded” into contracts. Termination clauses are included openly and transparently into the contracts and are not “coded”. The answer to the question is:
(a) Termination clauses are included in all of the contracts.
(b) Not applicable.
(c) In all four contracts, the contract permits termination in the event of default by the Contractor or the Principal. In addition, in contracts 03/005 and 135/02 there is provision for termination by the Principal without giving cause by giving the Contractor 30 days notice. In invoking that clause, compensation would be payable.
The cost of abandoning construction would be in excess of $1billion if the Opposition followed through on its plans to cancel construction of the New MetroRail Project.
By mid-February 2005 - at the time of the next election - there would already be a significant portion of the Gallop Government's rail vision for the 21st century in place.
The northern suburbs rail extension would be completed. The Thornlie Spur and the up-grades of the Kenwick line would also be finalised.
Some 70 new rail cars would be bought, the Nowergup Depot built and substantial progress on components of the southern rail project would be in place, amounting to $665million.
Given the cost of paying out contracts would be $200-$300million, then we would need to provide at least $150million on bus projects for southern suburbs commuters.
It would cost the Coalition $1 billion not to build the rail, and $1.5 billion for the Government to build it. The latter is by far better value for money.
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