Fletcher Construction and its 50% partner, Acciona, have reached a settlement with the New Zealand Transport Agency (NZTA) and the Northern Express Group (NX2) regarding a claim related to the Puhoi to Warkworth motorway project.
The claim, which was lodged by the construction joint venture, sought to recover costs associated with delays and impacts caused by COVID-19 and weather events.
The settlement, while less than the expected recovery, has been described as a commercial resolution that avoids a prolonged dispute.
As a result of the settlement, Fletcher Building said it expects to recognise a loss on claims receivable of $16.4 million in the 2025 financial year.
However, it also said it will receive further cash proceeds of $56m from the project in the same year.
The construction joint venture has also submitted claims under the Contract Works Insurance policy for damage caused by landslips and weather events, which are still being negotiated with insurers.
The resolution of these matters will determine the final outcome of the Puhoi to Warkworth project.
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