❓ The Minister addresses concerns about a potential cost overrun on the Perth to Bunbury highway project, clarifying that the increased cost reflects a preliminary estimate versus a detailed plan, and broader economic factors.
AnsweredQoN 521Legislative Council
QuestionView source ↗
Will the minister provide a detailed summary of the estimated cost overrun on the Peel deviation project? Hon ADELE FARINA
AnswerView source ↗
I thank the honourable member for some notice of the question. There has been no cost overrun on the new Perth to Bunbury highway project. I assume the member’s question relates to the difference between a preliminary estimate of $340 million provided on request to the federal Department of Transport and Regional Services in April 2004 and the current cost estimate of $450 million, in 2005 dollar terms, which has been developed as a result of further detailed planning for the project. At the time the preliminary estimate was provided, it was made clear that this was indicative only, as the project design was at a conceptual stage. In addition, the 2004 estimate did not reflect the significant cost increases encountered throughout Australia over the past year associated with an overheated construction industry and increased oil costs. Similar increases have been experienced in civil construction across Australia. For example, the cost of the Albury to Wodonga road bypass has, over the same time, increased from $346 million to $524 million, a cost increase of $178 million.
Hon ADELE FARINA replied: I thank the honourable member for some notice of the question. There has been no cost overrun on the new Perth to Bunbury highway project. I assume the member’s question relates to the difference between a preliminary estimate of $340 million provided on request to the federal Department of Transport and Regional Services in April 2004 and the current cost estimate of $450 million, in 2005 dollar terms, which has been developed as a result of further detailed planning for the project. At the time the preliminary estimate was provided, it was made clear that this was indicative only, as the project design was at a conceptual stage. In addition, the 2004 estimate did not reflect the significant cost increases encountered throughout Australia over the past year associated with an overheated construction industry and increased oil costs. Similar increases have been experienced in civil construction across Australia. For example, the cost of the Albury to Wodonga road bypass has, over the same time, increased from $346 million to $524 million, a cost increase of $178 million.
I thank the honourable member for some notice of the question. There has been no cost overrun on the new Perth to Bunbury highway project. I assume the member’s question relates to the difference between a preliminary estimate of $340 million provided on request to the federal Department of Transport and Regional Services in April 2004 and the current cost estimate of $450 million, in 2005 dollar terms, which has been developed as a result of further detailed planning for the project. At the time the preliminary estimate was provided, it was made clear that this was indicative only, as the project design was at a conceptual stage. In addition, the 2004 estimate did not reflect the significant cost increases encountered throughout Australia over the past year associated with an overheated construction industry and increased oil costs. Similar increases have been experienced in civil construction across Australia. For example, the cost of the Albury to Wodonga road bypass has, over the same time, increased from $346 million to $524 million, a cost increase of $178 million.
There has been no cost overrun on the new Perth to Bunbury highway project. I assume the member’s question relates to the difference between a preliminary estimate of $340 million provided on request to the federal Department of Transport and Regional Services in April 2004 and the current cost estimate of $450 million, in 2005 dollar terms, which has been developed as a result of further detailed planning for the project. At the time the preliminary estimate was provided, it was made clear that this was indicative only, as the project design was at a conceptual stage. In addition, the 2004 estimate did not reflect the significant cost increases encountered throughout Australia over the past year associated with an overheated construction industry and increased oil costs. Similar increases have been experienced in civil construction across Australia. For example, the cost of the Albury to Wodonga road bypass has, over the same time, increased from $346 million to $524 million, a cost increase of $178 million.
Hon ADELE FARINA replied: I thank the honourable member for some notice of the question. There has been no cost overrun on the new Perth to Bunbury highway project. I assume the member’s question relates to the difference between a preliminary estimate of $340 million provided on request to the federal Department of Transport and Regional Services in April 2004 and the current cost estimate of $450 million, in 2005 dollar terms, which has been developed as a result of further detailed planning for the project. At the time the preliminary estimate was provided, it was made clear that this was indicative only, as the project design was at a conceptual stage. In addition, the 2004 estimate did not reflect the significant cost increases encountered throughout Australia over the past year associated with an overheated construction industry and increased oil costs. Similar increases have been experienced in civil construction across Australia. For example, the cost of the Albury to Wodonga road bypass has, over the same time, increased from $346 million to $524 million, a cost increase of $178 million.
I thank the honourable member for some notice of the question. There has been no cost overrun on the new Perth to Bunbury highway project. I assume the member’s question relates to the difference between a preliminary estimate of $340 million provided on request to the federal Department of Transport and Regional Services in April 2004 and the current cost estimate of $450 million, in 2005 dollar terms, which has been developed as a result of further detailed planning for the project. At the time the preliminary estimate was provided, it was made clear that this was indicative only, as the project design was at a conceptual stage. In addition, the 2004 estimate did not reflect the significant cost increases encountered throughout Australia over the past year associated with an overheated construction industry and increased oil costs. Similar increases have been experienced in civil construction across Australia. For example, the cost of the Albury to Wodonga road bypass has, over the same time, increased from $346 million to $524 million, a cost increase of $178 million.
There has been no cost overrun on the new Perth to Bunbury highway project. I assume the member’s question relates to the difference between a preliminary estimate of $340 million provided on request to the federal Department of Transport and Regional Services in April 2004 and the current cost estimate of $450 million, in 2005 dollar terms, which has been developed as a result of further detailed planning for the project. At the time the preliminary estimate was provided, it was made clear that this was indicative only, as the project design was at a conceptual stage. In addition, the 2004 estimate did not reflect the significant cost increases encountered throughout Australia over the past year associated with an overheated construction industry and increased oil costs. Similar increases have been experienced in civil construction across Australia. For example, the cost of the Albury to Wodonga road bypass has, over the same time, increased from $346 million to $524 million, a cost increase of $178 million.
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