Ann: Change of Director's Interest Notice - D Robinson, page-5

"• The Project experienced significant cost overruns due to several compounding project-specific issues:

• External delays which resulted in extension of time submissions

• Materially worse sub-surface ground conditions which were not allowed for in the tender estimate, which caused an underestimation of site piling requirements

• Continuous re-planning of construction due to the interdependence with piling, which was compounded by adverse weather conditions at the Project site, increasing subcontractor costs (both people and plant) and logistics costs"


Sounds like a whole series of cost over runs, combined with a lowish CR price have brought this price back to earth with a thud.

Weather making the site boggy I assume
Ground very flat and possibly swampy when wet , could even be underground springs
Weather and solid conditions undermining a portion of the 1100 piles
Piles not designed for the conditions that eventuates, a big site to do full geo testing on ,so these things can happen
Cost of trying to de water a site can be huge
And I assume, site managers who were too inexperienced in hindsight, didn't bring head office in soon enough .

It's a 15 -20% cost over run, not great but you multiply a problem by say 1100 piles or water issues over a huge site and things multiply quickly.

In hindsight, they will have wished they were a lot more thorough and cautious in accepting the contract, and in who they placed on site.
Regardless, stocks 90 % of the time seem to always retrace to the CR price.