A WA parliamentary question on notice addresses the contract between the State Government and Corrections Corporation of Australia (CCA) for the Acacia prison, inquiring about its value, variations, and potential withdrawal penalties. The Minister provides specific details on the contract and variations.

AnsweredQoN 335Legislative Council
Asked
17 October 2000
Portfolio
Justice

QuestionView source ↗

I refer to the contract between the State Government and Corrections Corporation of Australia to build the 750-bed medium security Acacia prison at Wooroloo. (1) In relation to the contract - (i) what was the original value and completion date; (ii) what is its length; and (iii) what is its annual value? (2) Has any money been paid to CCA for cost variations since commencement of the building contract? (3) If yes, how much and what for? (4) Will the Government incur any penalties in the event that it wishes to withdraw from the contract; and, if so, what are they? Hon PETER FOSS

AnswerView source ↗

(1) (i) $78 714 678 - 20 September 2000. (ii) 74 weeks and 2 days. (iii) The contract price is fixed for the term of the contract. There is no annual value. (2) Yes. (3) Variation 1 - reduction in length of incoming water main - price decrease of $8 055. Hon Bob Thomas: That is the first time I have heard of a variation bringing the price down. Hon PETER FOSS: Having had a lot to do with building contracts, I know of many variations both ways. It is perfectly usual, and I am very well aware of it. To continue - Variation 2 - change in cost of first three months deferred payments - price decrease of $20 374. Variation 3 - provision for double bunking - price increase of $40 212. Variation 4 - increase in Department of Environmental Protection works approval application fees - price increase of $1 662. Hon Ljiljanna Ravlich: There was no building cost variation? The PRESIDENT: Order! Hon Ljiljanna Ravlich should not use up her next question yet. Hon PETER FOSS: To continue - Variation 5 - clean up of land adjacent to access road - price increase of $33 350. Variation 6 - provision of left-turn slip lane at Great Eastern Highway - price increase $25 522. (4) In the event that the Government terminates the design and construction agreement for any reason other than a default by the contractor, the Government will incur penalties as provided for in clause 22.8 of the agreement. A copy of the agreement is available in the Parliament House library.
(1) In relation to the contract - (i) what was the original value and completion date; (ii) what is its length; and (iii) what is its annual value? (2) Has any money been paid to CCA for cost variations since commencement of the building contract? (3) If yes, how much and what for? (4) Will the Government incur any penalties in the event that it wishes to withdraw from the contract; and, if so, what are they? Hon PETER FOSS replied: (1) (i) $78 714 678 - 20 September 2000. (ii) 74 weeks and 2 days. (iii) The contract price is fixed for the term of the contract. There is no annual value. (2) Yes. (3) Variation 1 - reduction in length of incoming water main - price decrease of $8 055. Hon Bob Thomas: That is the first time I have heard of a variation bringing the price down. Hon PETER FOSS: Having had a lot to do with building contracts, I know of many variations both ways. It is perfectly usual, and I am very well aware of it. To continue - Variation 2 - change in cost of first three months deferred payments - price decrease of $20 374. Variation 3 - provision for double bunking - price increase of $40 212. Variation 4 - increase in Department of Environmental Protection works approval application fees - price increase of $1 662. Hon Ljiljanna Ravlich: There was no building cost variation? The PRESIDENT: Order! Hon Ljiljanna Ravlich should not use up her next question yet. Hon PETER FOSS: To continue - Variation 5 - clean up of land adjacent to access road - price increase of $33 350. Variation 6 - provision of left-turn slip lane at Great Eastern Highway - price increase $25 522. (4) In the event that the Government terminates the design and construction agreement for any reason other than a default by the contractor, the Government will incur penalties as provided for in clause 22.8 of the agreement. A copy of the agreement is available in the Parliament House library.
(ii) what is its length; and (iii) what is its annual value?
(iii) what is its annual value?
(3) If yes, how much and what for? (4) Will the Government incur any penalties in the event that it wishes to withdraw from the contract; and, if so, what are they? Hon PETER FOSS replied: (1) (i) $78 714 678 - 20 September 2000. (ii) 74 weeks and 2 days. (iii) The contract price is fixed for the term of the contract. There is no annual value. (2) Yes. (3) Variation 1 - reduction in length of incoming water main - price decrease of $8 055. Hon Bob Thomas: That is the first time I have heard of a variation bringing the price down. Hon PETER FOSS: Having had a lot to do with building contracts, I know of many variations both ways. It is perfectly usual, and I am very well aware of it. To continue - Variation 2 - change in cost of first three months deferred payments - price decrease of $20 374. Variation 3 - provision for double bunking - price increase of $40 212. Variation 4 - increase in Department of Environmental Protection works approval application fees - price increase of $1 662. Hon Ljiljanna Ravlich: There was no building cost variation? The PRESIDENT: Order! Hon Ljiljanna Ravlich should not use up her next question yet. Hon PETER FOSS: To continue - Variation 5 - clean up of land adjacent to access road - price increase of $33 350. Variation 6 - provision of left-turn slip lane at Great Eastern Highway - price increase $25 522. (4) In the event that the Government terminates the design and construction agreement for any reason other than a default by the contractor, the Government will incur penalties as provided for in clause 22.8 of the agreement. A copy of the agreement is available in the Parliament House library.
(4) Will the Government incur any penalties in the event that it wishes to withdraw from the contract; and, if so, what are they? Hon PETER FOSS replied: (1) (i) $78 714 678 - 20 September 2000. (ii) 74 weeks and 2 days. (iii) The contract price is fixed for the term of the contract. There is no annual value. (2) Yes. (3) Variation 1 - reduction in length of incoming water main - price decrease of $8 055. Hon Bob Thomas: That is the first time I have heard of a variation bringing the price down. Hon PETER FOSS: Having had a lot to do with building contracts, I know of many variations both ways. It is perfectly usual, and I am very well aware of it. To continue - Variation 2 - change in cost of first three months deferred payments - price decrease of $20 374. Variation 3 - provision for double bunking - price increase of $40 212. Variation 4 - increase in Department of Environmental Protection works approval application fees - price increase of $1 662. Hon Ljiljanna Ravlich: There was no building cost variation? The PRESIDENT: Order! Hon Ljiljanna Ravlich should not use up her next question yet. Hon PETER FOSS: To continue - Variation 5 - clean up of land adjacent to access road - price increase of $33 350. Variation 6 - provision of left-turn slip lane at Great Eastern Highway - price increase $25 522. (4) In the event that the Government terminates the design and construction agreement for any reason other than a default by the contractor, the Government will incur penalties as provided for in clause 22.8 of the agreement. A copy of the agreement is available in the Parliament House library.
Hon PETER FOSS replied: (1) (i) $78 714 678 - 20 September 2000. (ii) 74 weeks and 2 days. (iii) The contract price is fixed for the term of the contract. There is no annual value. (2) Yes. (3) Variation 1 - reduction in length of incoming water main - price decrease of $8 055. Hon Bob Thomas: That is the first time I have heard of a variation bringing the price down. Hon PETER FOSS: Having had a lot to do with building contracts, I know of many variations both ways. It is perfectly usual, and I am very well aware of it. To continue - Variation 2 - change in cost of first three months deferred payments - price decrease of $20 374. Variation 3 - provision for double bunking - price increase of $40 212. Variation 4 - increase in Department of Environmental Protection works approval application fees - price increase of $1 662. Hon Ljiljanna Ravlich: There was no building cost variation? The PRESIDENT: Order! Hon Ljiljanna Ravlich should not use up her next question yet. Hon PETER FOSS: To continue - Variation 5 - clean up of land adjacent to access road - price increase of $33 350. Variation 6 - provision of left-turn slip lane at Great Eastern Highway - price increase $25 522. (4) In the event that the Government terminates the design and construction agreement for any reason other than a default by the contractor, the Government will incur penalties as provided for in clause 22.8 of the agreement. A copy of the agreement is available in the Parliament House library.
(1) (i) $78 714 678 - 20 September 2000. (ii) 74 weeks and 2 days. (iii) The contract price is fixed for the term of the contract. There is no annual value. (2) Yes. (3) Variation 1 - reduction in length of incoming water main - price decrease of $8 055. Hon Bob Thomas: That is the first time I have heard of a variation bringing the price down. Hon PETER FOSS: Having had a lot to do with building contracts, I know of many variations both ways. It is perfectly usual, and I am very well aware of it. To continue - Variation 2 - change in cost of first three months deferred payments - price decrease of $20 374. Variation 3 - provision for double bunking - price increase of $40 212. Variation 4 - increase in Department of Environmental Protection works approval application fees - price increase of $1 662. Hon Ljiljanna Ravlich: There was no building cost variation? The PRESIDENT: Order! Hon Ljiljanna Ravlich should not use up her next question yet. Hon PETER FOSS: To continue - Variation 5 - clean up of land adjacent to access road - price increase of $33 350. Variation 6 - provision of left-turn slip lane at Great Eastern Highway - price increase $25 522. (4) In the event that the Government terminates the design and construction agreement for any reason other than a default by the contractor, the Government will incur penalties as provided for in clause 22.8 of the agreement. A copy of the agreement is available in the Parliament House library.
(ii) 74 weeks and 2 days. (iii) The contract price is fixed for the term of the contract. There is no annual value. (2) Yes. (3) Variation 1 - reduction in length of incoming water main - price decrease of $8 055. Hon Bob Thomas: That is the first time I have heard of a variation bringing the price down. Hon PETER FOSS: Having had a lot to do with building contracts, I know of many variations both ways. It is perfectly usual, and I am very well aware of it. To continue - Variation 2 - change in cost of first three months deferred payments - price decrease of $20 374. Variation 3 - provision for double bunking - price increase of $40 212. Variation 4 - increase in Department of Environmental Protection works approval application fees - price increase of $1 662. Hon Ljiljanna Ravlich: There was no building cost variation? The PRESIDENT: Order! Hon Ljiljanna Ravlich should not use up her next question yet. Hon PETER FOSS: To continue - Variation 5 - clean up of land adjacent to access road - price increase of $33 350. Variation 6 - provision of left-turn slip lane at Great Eastern Highway - price increase $25 522. (4) In the event that the Government terminates the design and construction agreement for any reason other than a default by the contractor, the Government will incur penalties as provided for in clause 22.8 of the agreement. A copy of the agreement is available in the Parliament House library.
(iii) The contract price is fixed for the term of the contract. There is no annual value. (2) Yes. (3) Variation 1 - reduction in length of incoming water main - price decrease of $8 055. Hon Bob Thomas: That is the first time I have heard of a variation bringing the price down. Hon PETER FOSS: Having had a lot to do with building contracts, I know of many variations both ways. It is perfectly usual, and I am very well aware of it. To continue - Variation 2 - change in cost of first three months deferred payments - price decrease of $20 374. Variation 3 - provision for double bunking - price increase of $40 212. Variation 4 - increase in Department of Environmental Protection works approval application fees - price increase of $1 662. Hon Ljiljanna Ravlich: There was no building cost variation? The PRESIDENT: Order! Hon Ljiljanna Ravlich should not use up her next question yet. Hon PETER FOSS: To continue - Variation 5 - clean up of land adjacent to access road - price increase of $33 350. Variation 6 - provision of left-turn slip lane at Great Eastern Highway - price increase $25 522. (4) In the event that the Government terminates the design and construction agreement for any reason other than a default by the contractor, the Government will incur penalties as provided for in clause 22.8 of the agreement. A copy of the agreement is available in the Parliament House library.
(2) Yes. (3) Variation 1 - reduction in length of incoming water main - price decrease of $8 055. Hon Bob Thomas: That is the first time I have heard of a variation bringing the price down. Hon PETER FOSS: Having had a lot to do with building contracts, I know of many variations both ways. It is perfectly usual, and I am very well aware of it. To continue - Variation 2 - change in cost of first three months deferred payments - price decrease of $20 374. Variation 3 - provision for double bunking - price increase of $40 212. Variation 4 - increase in Department of Environmental Protection works approval application fees - price increase of $1 662. Hon Ljiljanna Ravlich: There was no building cost variation? The PRESIDENT: Order! Hon Ljiljanna Ravlich should not use up her next question yet. Hon PETER FOSS: To continue - Variation 5 - clean up of land adjacent to access road - price increase of $33 350. Variation 6 - provision of left-turn slip lane at Great Eastern Highway - price increase $25 522. (4) In the event that the Government terminates the design and construction agreement for any reason other than a default by the contractor, the Government will incur penalties as provided for in clause 22.8 of the agreement. A copy of the agreement is available in the Parliament House library.
(3) Variation 1 - reduction in length of incoming water main - price decrease of $8 055. Hon Bob Thomas: That is the first time I have heard of a variation bringing the price down. Hon PETER FOSS: Having had a lot to do with building contracts, I know of many variations both ways. It is perfectly usual, and I am very well aware of it. To continue - Variation 2 - change in cost of first three months deferred payments - price decrease of $20 374. Variation 3 - provision for double bunking - price increase of $40 212. Variation 4 - increase in Department of Environmental Protection works approval application fees - price increase of $1 662. Hon Ljiljanna Ravlich: There was no building cost variation? The PRESIDENT: Order! Hon Ljiljanna Ravlich should not use up her next question yet. Hon PETER FOSS: To continue - Variation 5 - clean up of land adjacent to access road - price increase of $33 350. Variation 6 - provision of left-turn slip lane at Great Eastern Highway - price increase $25 522. (4) In the event that the Government terminates the design and construction agreement for any reason other than a default by the contractor, the Government will incur penalties as provided for in clause 22.8 of the agreement. A copy of the agreement is available in the Parliament House library.
Hon Bob Thomas: That is the first time I have heard of a variation bringing the price down. Hon PETER FOSS: Having had a lot to do with building contracts, I know of many variations both ways. It is perfectly usual, and I am very well aware of it. To continue - Variation 2 - change in cost of first three months deferred payments - price decrease of $20 374. Variation 3 - provision for double bunking - price increase of $40 212. Variation 4 - increase in Department of Environmental Protection works approval application fees - price increase of $1 662. Hon Ljiljanna Ravlich: There was no building cost variation? The PRESIDENT: Order! Hon Ljiljanna Ravlich should not use up her next question yet. Hon PETER FOSS: To continue - Variation 5 - clean up of land adjacent to access road - price increase of $33 350. Variation 6 - provision of left-turn slip lane at Great Eastern Highway - price increase $25 522. (4) In the event that the Government terminates the design and construction agreement for any reason other than a default by the contractor, the Government will incur penalties as provided for in clause 22.8 of the agreement. A copy of the agreement is available in the Parliament House library.
Hon PETER FOSS: Having had a lot to do with building contracts, I know of many variations both ways. It is perfectly usual, and I am very well aware of it. To continue - Variation 2 - change in cost of first three months deferred payments - price decrease of $20 374. Variation 3 - provision for double bunking - price increase of $40 212. Variation 4 - increase in Department of Environmental Protection works approval application fees - price increase of $1 662. Hon Ljiljanna Ravlich: There was no building cost variation? The PRESIDENT: Order! Hon Ljiljanna Ravlich should not use up her next question yet. Hon PETER FOSS: To continue - Variation 5 - clean up of land adjacent to access road - price increase of $33 350. Variation 6 - provision of left-turn slip lane at Great Eastern Highway - price increase $25 522. (4) In the event that the Government terminates the design and construction agreement for any reason other than a default by the contractor, the Government will incur penalties as provided for in clause 22.8 of the agreement. A copy of the agreement is available in the Parliament House library.
Variation 3 - provision for double bunking - price increase of $40 212. Variation 4 - increase in Department of Environmental Protection works approval application fees - price increase of $1 662.
Variation 4 - increase in Department of Environmental Protection works approval application fees - price increase of $1 662.
The PRESIDENT: Order! Hon Ljiljanna Ravlich should not use up her next question yet. Hon PETER FOSS: To continue - Variation 5 - clean up of land adjacent to access road - price increase of $33 350. Variation 6 - provision of left-turn slip lane at Great Eastern Highway - price increase $25 522. (4) In the event that the Government terminates the design and construction agreement for any reason other than a default by the contractor, the Government will incur penalties as provided for in clause 22.8 of the agreement. A copy of the agreement is available in the Parliament House library.
Hon PETER FOSS: To continue - Variation 5 - clean up of land adjacent to access road - price increase of $33 350. Variation 6 - provision of left-turn slip lane at Great Eastern Highway - price increase $25 522. (4) In the event that the Government terminates the design and construction agreement for any reason other than a default by the contractor, the Government will incur penalties as provided for in clause 22.8 of the agreement. A copy of the agreement is available in the Parliament House library.
Variation 6 - provision of left-turn slip lane at Great Eastern Highway - price increase $25 522.

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