A contractor has been appointed for the Halswell Junction Road extension following a further budget increase of $7.25 million, Christchurch City Council has announced.
Councillors approved the extra funding to cover project escalations and increased KiwiRail costs. Fulton Hogan Limited have been secured as the main contractor.
The project will create an improved link from Halswell Junction Road at Foremans Road to Waterloo Road. Council says it will improve safety and the freight network connections to Waterloo Business Park and to Pound Road.
“It will cross over railway lines, so the Council has been working with KiwiRail on integrating the project with rail infrastructure,” Council said in a statement.
“A small section of the project has been completed as part of the South Express Major Cycleway on Waterloo Road in 2022. However this next stage will include the majority of project construction. This includes the new link road, new level crossing and connections to the existing network, as well as the removal of the existing rail crossing and turning the road into a cul-de-sac.”
Council says the KiwiRail costs have escalated by $3.97 million due to signals design costs, price of materials, cost of civil construction and extended programme impacting management costs.
The remaining additional $3.28 million will cover project escalations including additional professional services, increased utility prices and increased roading construction costs.
“A risk remains of further increases in time and cost due to unconfirmed work on KiwiRail land. Council staff are working to reduce this risk,” Council said.
The work will be funded by rephasing some other projects in the transport capital programme, it said.
Work is expected to start mid-June with investigation works.