North-South Corridor: Costs of two-year delay to be known only after completion, LTA says

SINGAPORE: The additional cost arising from the two-year delay to the North-South Corridor project will only be known after the project is completed, the Land Transport Authority (LTA) told CNA on Friday (Sep 18).LTA will also determine whether any additional costs will be borne by the contractor or the agency itself, a spokesperson said.“The final additional cost, including the allocation of costs between the parties, could only be ascertained upon the completion of the project,” said the spokesperson.“As works are still ongoing, LTA is not in a position to comment on project costs at this stage.”The project was originally expected to cost S$7.47 billion.The comments come a day after LTA announced the delay, citing unexpectedly challenging ground conditions. The news sparked concerns among nearby businesses over their livelihoods, as well as among residents over the daily inconveniences from prolonged construction.LTA provides tenderers with available ground information to establish a baseline understanding of site conditions as part of the tender process, the spokesperson said.“Tenderers are expected to take into account construction risks that shall be taken as an experienced contractor when pricing their tender.“If the ground condition encountered during construction differs from the baseline information provided, the contractor can submit a claim for assessment.”LTA will then “make an assessment and consider additional payment” if the claim is deemed valid under contract provisions.“LTA’s priority remains to ensure that the NSC is completed expediently without compromising safety,” said the spokesperson.