The Star: March 07, 2024

Thursday March 7 2024 The Star
• By Adam Burns
BUILDING contractors for the
floundering new sports centre
have abandoned an appeal of
last year’s High Court decision
which prevented the firm from
pulling out from the project.
It follows a legal standoff between
contractors CPB and the
Government’s delivery agency
Rau Paenga and a mammoth
cost blowout for the plagued
Parakiore Recreation and Sport
Centre in the central city.
Construction on the longawaited
facility began six years
ago and was initially set for
completion by October 2021.
But the project has been
burdened by constant delays,
ballooning costs, and precarious
ground conditions.
It all came to a head last
year when the contractors and
project managers Rau Paenga
ended up in court, much to the
chagrin of local sports groups
and authorities.
CPB launched a bid to
terminate the contract in the
High Court, after Rau Paenga
rejected claims of sizeable cost
variations.
The firm estimated the total
cost for Parakiore was $696m,
more than triple the original
contract price agreed on.
The contractors requested extensions
to the project, but this
was declined by engineers.
In September 2022, CPB
claimed for an additional
$212m, which ballooned to
$439m in 12 months.
Both parties initially agreed
on a contract price of $220m.
Justice Geoffrey Venning
ruled in favour of Rau Paenga
last October, barring CPB
from suspending on-site
construction works based on its
“unsubstantiated claims”.
Latest Canterbury news at starnews.co.nz
Appeal dropped over
floundering sports facility
BUDGET
BLOWOUT:
The
Parakiore
Recreation
and Sport
Centre in
2022.
“The parties ultimately blame
each other for various breaches
of obligations resulting in the
delay and increased costs,” the
court ruling stated.
“Resolution of a number
of CPB’s claims through the
contractual dispute resolution
process is ongoing.”
Earlier this week, Rau Paenga’s
chief executive John O’Hagan
confirmed CPB had applied to
the Court of Appeal over the decision
but had since withdrawn
its application.
“CPB has continued work on
site throughout these proceedings,
but putting the legal action
behind us allows everyone to
refocus on getting Parakiore
completed as soon as possible.”
But Rau Paenga suggested
the projected timelines remain
a bone of contention with the
agency pushing for construction
to be completed before 2025.
“The facility is now about
75 per cent complete, but as
reported at the end of last year, a
gap remains between our desire
to see construction finished at
the end of this year and CPB’s
mid-2025 projection,” O’Hagan
said.
“We will continue to work
with CPB to try and close this
gap.”
One thing that remained unclear
was how much the project
was ultimately going to cost.
CPB had been paid $220m by
the time the matter ended up
in court last year and the city
council had contributed $147m
to the project.
Rau Paenga could not provide
a figure on what the project was
estimated to cost in total.
“We expect to also be able
to provide an update on cost
around the end of May.”
– RNZ
NEWS 5
Preventative
detention
for child sex
offender
A CHILD SEX offender with
more than 40 convictions for
crimes spanning more than three
decades has been sentenced to
preventive detention for abusing
a boy while on an extended
supervision order.
David Keith Morgan was
sentenced in the High Court at
Christchurch by Justice Melanie
Harland.
She said his offending was “escalating
and getting worse”.
A pre-sentencing report said
there was a “high” risk of reoffending.
Preventative detention means
he has an indeterminate prison
sentence. He can be released on
parole, but would remain managed
by Corrections for the rest
of his life and can be recalled to
prison at any time.
Judge Harland ordered he serve
a minimum period of imprisonment
of five years.
Morgan, 59, had earlier pleaded
guilty to one charge of sexual
connection with a male under
the age of 16 and two charges of
breaching the conditions of an
extended supervision order.
• Read the full story on
nzherald.co.nz
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