Question regarding termination clauses and potential penalties in the Roe 8 construction contracts, and whether contingency clauses exist to address a High Court challenge.

AnsweredQoN 1123Legislative Council
Asked
13 October 2016
Portfolio
Transport

QuestionView source ↗

ROE HIGHWAY STAGE 8 — CONSTRUCTION CONTRACT
1123. Hon LYNN MacLAREN to the parliamentary secretary representing the Minister for Transport:
I refer to contracts to build Roe 8.
(1) Do the
contracts contain convenience clauses to give either party to the agreements
rights in the event that the contracts are terminated?
(2) If yes to (1), what are the
specific terms of these clauses?
(3) What would be
the maximum penalty payable to the contractor should the government terminate
the contract?
(4) Have
contingency clauses been included to mitigate the risks of signing contracts if
the High Court challenge to Roe 8 is successful?

AnswerView source ↗

I thank the honourable member for
some notice of the question.
(1)–(2) The contract
contains the standard clauses common across Main Roads WA major contracts.
(3) There is no specified penalty in
the contract.
(4) No. The standard alliance
agreement clauses for termination are sufficient.

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