Transmission Gully contractors’ dispute settled out of court

By Soumya Bhamidipati of RNZ

A dispute between the contractors behind Transmission Gully has been settled out of court, two years after legal action began.

In 2021, building company CPB Contractors claimed $75 million against engineering firm AECOM New Zealand. The builder of the much-delayed motorway project north of Wellington alleged “defective” bridge and drain designs led to a budget blow-out.

A trial, earlier delayed because of pandemic-related backlogs, was scheduled to start last week - but has now been cancelled after the matter was settled on confidential terms.

Transmission Gully. Photo / Mark Mitchell

In a statement via its lawyer, AECOM New Zealand said it was unable to comment on either the settlement or the alleged issues, because of the terms agreed.

However, managing director Craig Davidson said the company was proud of its efforts.

“AECOM is extremely proud of the work done by its team on the Transmission Gully project which has delivered a transformative solution to create a more connected community across the greater Wellington region.”

CPB Contractors declined to comment.

The road opened last year, after facing multiple delays and going hundreds of millions of dollars over budget.

- RNZ