Christchurch sports centre: Contractor loses court bid

The High Court has ruled against building contractors CPB in its bid to suspend or stop work on Christchurch's new sports and recreation centre.

Residents and sports groups in Christchurch are set to wait at least another two years for the long awaited Parakiore Recreation and Sport Centre, after the project ended up in court.

CPB launched a bid to "suspend or terminate" the contract in the High Court, after the government's delivery agency rejected claims of dramatic cost increases.

CPB's legal team described the situation as "a case where Humpty Dumpty could not be put back together again".

Justice Geoffrey Venning ruled in favour of crown entity Rau Paenga Limited, earlier this week.

The ruling bars CPB from suspending on-site construction works, based on its unsubstantiated claims.

CPB is estimating the total cost for the sports centre is $696m, more than triple the original contract price agreed on.

Construction began in 2018 and was initially set for completion by October 2021.

Both Rau Paenga and CPB agreed on a contract price of $220m.

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.

"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."

Sport Canterbury chief executive Julyan Falloon said he was gobsmacked by the situation.

"The level of cost variation requests is just beyond belief," Falloon said.

"A project that was just over $200-odd million has increased three-fold in terms of variations, not only financially, which is hugely concerning, but also the constant delays to a piece of infrastructure that the city is crying out for."

The ongoing delays to the project meant the city would continue to lose out on booking major events, Falloon said.

"How can we do that when we don't have timeframes and opening dates?

"It just seems farcical... the quantum of what they're asking for, it just seems ridiculous.

"Hopefully the [court ruling] will give them a message that it's not tolerated, get on with it, get it completed and we can all move on."

Rau Paenga chief executive John O'Hagan said it continued 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 percent complete, for which CPB has been paid around $220m to date.

"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," O'Hagan said.

Christchurch City Council contributed $147m to the project and its chief executive Dawn Baxendale said they were "disappointed and dismayed" by the lack of progress.

"On-site work began on this project in 2018, and Cantabrians were initially told it would be completed by 2021.

"Christchurch residents, sports organisations and community groups have been waiting years to enjoy this space, and we believe they deserve better," Baxendale said.

Plans for the central city sports and recreation centre site, stretching over more than 30,000 square metres, include a 50m, 10 lane competition swimming pool, a separate diving pool, five hydroslides, an aquatic leisure area, nine indoor courts, fitness spaces and seating for up to 2500 people.

Christchurch's QEII facility, and its 50m competition pool, was built for the 1974 Commonwealth Games, but damaged beyond repair in the 2011 earthquakes.