Alarm bells have gone off at Auckland’s $5.5 billion City Rail Link with the body set up to run the project expressing a lack of confidence with the main contractor’s forecasts, and taking their concerns to the highest political levels. .
VINCI Grand Projects - the French contractor leading the Link Alliance that is building the CRL - is sending senior executives from France on December 12 to meet with City Rail Link Ltd - the company set up by Auckland Council and the Government to oversee the project.
It’s then intended the project will be handed over to Auckland Transport for further testing and opening for service in 2026.
“There remains no suggestion that the project budget is at risk, with over 90% of construction complete,” the report said.
The report said that on September 25, CRL Ltd wrote to council and the Government “with an outline of their concerns and lack of confidence in the Link Alliance’s reporting and forecasting”.
In the letter, CRL Ltd said it would issue a notice to the Link Alliance “indicating their lack of confidence with the provision of risk (both time and cost) and seeking a meeting to discuss concerns”.
The plan is to meet with the VINCI executives to undertake a joint review - led by a former chief executive of Fulton Hogan and the project director for the Puhoi to Warkworth highway, Robert Jones - for completion in December.
Former Fulton Hogan chief executive Robert Jones is leading the independent review into the CRL. Photo / Michael Craig
An independent assurance manager who regularly advises the sponsors about time, costs, and quality on the CRL project is also delivering a deep-dive into operational readiness by December, and assurance managers are delivering a review of the testing and commissioning phase.
“These two pieces of work will help CRL Ltd and sponsors to gain a more accurate understanding of the programme and costs,” the report said.
In a joint statement, Transport Minister Simeon Brown and Auckland Mayor Wayne Brown said they know how important the CRL is for Auckland and remain committed to holding all parties accountable to deliver it on budget and on time.
“CRL Ltd has advised us that since the letter was sent, there has been greater alignment between the Link Alliance and CRL on the programme and its cost. (They) have advised us that the project remains on track for opening to the public in 2026,” they said.
Furthermore, the two leaders said they had been advised the joint review would agree to the remainder of the programme and costs.
CRL Ltd chief executive Patrick Brockie and the council’s resilience and infrastructure director Barry Potter played down the language in the report about a “lack of confidence” in the Link Alliance and risks to time and cost.
Brockie said the language about a lack of confidence was not uncommon when the Link Alliance tried to complete work early to generate more income, and what the sponsors think is realistic.
The City Rail link is being built between Britomart and Mt Eden.
When asked if VINCI is trying to rush the end of the project, Brockie said the company has set optimistic target dates throughout the project to motivate staff and complete work ahead of schedule.
Potter said there is no suggestion the project budget is at risk and 2026 is when passengers would be jumping on trains.
The concerns have surfaced at a critical stage for the CRL - the installation and testing of electrical, signalling, and control systems, and connecting the new systems to the existing rail network.
Transport Minister Simeon Brown, left, and Mayor of Auckland Wayne Brown say they will hold all parties accountable to deliver the City Rail Link on budget and on time. Photo / Alex Burton
Global firm Honeywell is “currently behind schedule” integrating the stations’ control systems, the report said.
Brockie said there had been some challenges with this work “but I’m confident we have turned the corner but we are going to have to put the pedal to the metal”.
On a tour of the underground tunnels and stations last month, Brockie told the Herald that “overseas experience tells us this is the most difficult part of the project”.
In the back of everyone’s minds is London’s Crossrail line under London which was four months away from completion when an electrical failure triggered a series of delays and failures, cost overruns of $5b, sacking of the board and opening nearly four years late.
The Herald has gone to VINCI for comment.
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