Builder wants more money and extended timeframe to finish Christchurch’s Parakiore Recreation and Sport Centre

Crown delivery agency Rau Paenga has today advised that it has rejected a claim by the contractor building the new Parakiore Recreation and Sport Centre in Christchurch for more money and time to complete the project.

The much-delayed ‘anchor’ project of Christchurch’s post 2011 earthquake rebuild, which sits between the city’s Moorhouse Avenue, Stewart Street, St Asaph Street and Antigua Street, is sill only 70% and its opening is unlikely to happen before mid-2025.

From an originally scheduled opening date of 2016, the project has been beset by a range of delays relating to the pandemic, supply issues, ground instability and rising costs.

The rising costs have seen CPB Contractors look to claim an extra $439.4 million bringing the project’s contract value to $696 million.

However, Christchurch rebuild agency Rau Paenga, the Crown infrastructure delivery agency formerly known as Ōtākaro, which is managing the project has today announced that it is rejecting the claim.

Acknowledging the receipt of the increased claim, Rau Paenga Chief Executive, John O’Hagan today advised that the Crown company rejects “the excessive and unsubstantiated claim on both entitlement and amount”.

O’Hagan released a statement advising “CPB’s claim relates to a range of issues including COVID-19 and associated delays, design and adverse ground conditions, and other sundry claims, including allegations that Rau Paenga has not provided acceptable building design documentation.

“Rau Paenga has confidence in the quality of its design. The facility is already over 70% complete, for which CPB has been paid around $220 million to date, and includes some COVID related claims.

“As you will be aware, CPB had already lodged a claim in September 2022 for an additional $212 million, which it increased to $439.4 million at the start of September 2023.

“The Rau Paenga team knows all too well what Parakiore will bring to Christchurch. We have families and friends as eager as anyone to ride those hydroslides and play on the courts, but we also have a duty to be responsible with Crown funds.

“We have and will continue to do all we can to get construction of Parakiore completed as close to the end of 2024 as possible but acknowledge this will be challenging given CPB’s current stance.

“While we would like to find a reasonable commercial resolution to this matter, Rau Paenga has already successfully taken legal action to prevent CPB from suspending construction works on site based on its unsubstantiated claims. As the legal action continues, we are limited in what else we can say at this time.”

Images: The Parakiore Recreation and Sports Centre under construction (top, credit: Rau Paenga) and an early concept for the competition pool area within the facility (below).