This article is from the Australian Property Journal archive
THE South Australian government has dumped its plans to develop a new $500 million courts and legal precinct after awarding the job to a Lend Lease consortium.
The state`s Attorney-General John Rau said the proposal from the Activate 40 consortium, which consists Lend Lease, Capella Capital, Aurecon and Mott MacDonald Australia, did not represent value for money.
Rau told the ABC that the $500 million precinct was put on hold due to funding concerns.
“Any government has to be responsible in its use of public funds. We do need to consider all options. And again, that’s basically a matter which will be resolved as a part of any budget process,” he said.
“The actual build proposed was fit for purpose, however it did not achieve the value for money proposition needed by government for the project to go ahead.
“Further consideration of a courts precinct development and IT provision will now occur in the context of budget deliberations,” Rau said in a statement.
Design for the precinct was approved last year and constructions were due to start in January. However it was delayed until March.
Lend Lease said in a statement that it is aware the project is not proceeding.
“We are aware of the decision by the state government to terminate the Courts Precinct Renewal Process which did not reflect on the high quality of our proposal.
“Lend Lease looks forward to working with the government on future capital projects, including other options for renewal of the Courts Precinct,” Lend Lease said.
Liberal opposition spokeswoman Vickie Chapman told the ABC the new precinct was desperately overdue.
“We`re in the dark ages with our court situation.” Chapman said.
Australian Property Journal
