Rau Paenga Rejects Increased $439.4m Claim From CPB Contractors

Rau Paenga has rejected an increased claim for $439.4m from CPB, the Main Works contractor on Christchurch’s Parakiore Recreation and Sport Centre, as noted in the Crown company’s recently published annual report.

The claim would see the project’s contract value increase to $696m, and the construction completion date shift to May 2025.

Rau Paenga Chief Executive, John O’Hagan, says the Crown company continues to reject the excessive and unsubstantiated claim on both entitlement and amount.

“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 $220m 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 $212m, which it increased to $439.4m 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.

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