SOUTH TUNNEL BORER ARRIVED TO KÁLVIN SQUARE

The south TBM of metro 4 has reached Kálvin Square in one month, and its north pair will arrive to the station at the end of October. In the frame of a several month negotiation series on the program of the tunnel works BAMCO consortium now led by STRABAG has submitted the works program for the finishing of the Pest side tunnel section. According to the document the consortium can build the tunnel section between Fővám Square and Baross Square in about 50 weeks instead of the originally undertaken 22 weeks, in other words it takes more than double time. DBR is forced to note the announcement, but cannot accept it, thus all additional costs arising from the delay due to the extended tunneling works will be devolved on BAMCO consortium. In the last couple of days DBR's programming team has incorporated the new works program into the overall project program, and with consideration of the contractor's accumulated delays at the Buda side also the operation test originally planned in the last quarter of 2011 now may realistically be due 10 months later, in the autumn of 2012 only. The negotiations will continue, of course.

In the last months DBR Metro Project Directorate and the engineer, Eurometro, has taken every effort in order to reduce the time period proposed by the tunnel builder during the negotiations to build the Pest side to a time a time period deemed realistic by the Client also, but eventually the STRABAG led BAMCO consortium has not changed its position formed previously. As a result of the above, BAMCO can build the Pest side tunnels in about 50 weeks only instead of the originally assumed 22 weeks, and respectively the 35 weeks deemed realistic by DBR in the present circumstances, in other words the TBMs will arrive to Baross Square, the temporary final station of the first section the earliest in the autumn of 2010.

Reasons to the extension of the end date:

Several factors contributed to that that DBR and the engineer, Eurometro, was eventually forced to amend again the program and end date of the project. The tunneling works incurred significant delays at the Buda side already. In this somewhat it played a role that the works site at Etele Square was made available for the contractor with a delay of about 70 days. DBR conceded this one delay and bore the resulting additional costs. In the much greater accumulated delay, however, the evolved dispute between the Client and the Contractor, the multiple arbitrary stoppages, the technical disagreement about the connecting tunnel at St. Gellért Square and the forced instruction of works due to the deterioration of the CH building had a more dominant role according to DBR, but the extended removal of the TBM servicing equipment from Etele Square to St. Gellért Square occurred as a negative effect and respectively the contractor’s programming also, which presumably often differed from reality.

As previously BAMCO based the reasons of its Buda side delays on the late availability of the Fővám Square station (while the TBM had not even arrived yet), now as one of the main reasons for the future delay announced recently the tunneling company indicated the advanced progress, completion of the station works. According to BAMCO, by the fact that the stations are structurally nearly completed at some locations, it is harder to access the work sites and to service the tunnel boring machines. It is an obvious fact that the station building works progressed significantly, while in the tunneling a considerable delay accumulated, but yet it would have been an unassumable step to suspend station building works even only temporarily, and through this provide basis for other contractors to claim for additional costs. Referring to this as a reason for such a great delay is unacceptable, according to DBR.

DBR’s opinion remains that with a constructive attitude from the contractor all this could have been avoided. While building of the Fővám Square station was on critical path, BAMCO in almost every case considered that as a reference basis for slowing down its work and respectively enforcing its claims. Later when the fate of the platform tunnels stretching under the Danube and thereby the Fővám Square station was resolved, the connecting tunnel at St. Gellért Square became the center of the negotiations, finishing of which is scheduled by the contractor later than the tunneling completion in its latest works program. With the building of this, anyway, BAMCO has fallen in delay also, and then tried to speed up the works such way as in the middle of the discussions on the EU aid attempted to proceed under the Danube in the absence of the authority’s approval. In possession of the authority’s approval the tunneling works could be resumed later, but the deterioration of the CH building above the St. Gellért Square station built also by BAMCO required immediate intervention, as a result of which the condition of the very old Technical University building was stabilized then. Then under the Danube works proceeded with a good pace, but BAMCO did not finish on time with the moving of the TBM servicing equipment from Etele Square to St. Gellért Square either, in addition stopped for a much longer time at Fővám Square than so planned for maintenance and will also at Kálvin Square as per the announcement. So now the progress of station building works means the major problem for the contractor, although it is more likely that BAMCO simply overestimated its work pace in its original works program. These factors together with delay in the preparation of the Kelenföld depot has all been, and going to be contributing to the amendment of the project’s end date again.

Impact of the delay of tunneling works on other contractors:

In the past few days the new works program so submitted now by BAMCO has been incorporated into the overall project’s works program containing more than two thousand lines, in other words highly important, mostly interacting work phases (works programs of the contractors may often contain the same amount of elements each). The tunneling work is the most important element of the project, and its delay entailed that the contractors could not/cannot finish the last phases of the structural works of stations otherwise being in advanced completion state until the TBMs pass, both contractors the track builders and the interior builders could and will get the work site later, just as the contractor installing the system can start working only later, as well.

Status of the negotiations on claims:

Lastly, it is also known that in the spring BAMCO, at then still led by the French VINCI, defined the total sum of its more than 200 claims mostly insufficiently substantiated technically in 35 milliard Forints, by which it symbolically would have liked to settle the past and the future. Currently the dispute is over a claim covering an actual technical content with a much less amount. However, as a result of the delay in tunneling a significant claim arose on the side of the Client, the DBR. These negotiations are continuous, and presumably will be so up until BAMCO will reach the temporary final station at Baross Square. Then it will become clear that how much the actual delay is, and consequently who owes and what amount to the other party.

Budapest, 15th October 2009

DBR Metro Project Directorate