If we get locked into a COST- PLUS contract for the AFL stadium then Tasmanians bear the inflationary price rises on materials, and sky is the limit when it comes to the final stadium cost.
Stadium bidder Webuild’s cost-plus contract for Snowy 2.0 is the subject of intense criticism due to an eyewatering cost blowout there, from $2 billion to more than $20 billion.
A cost-plus contract is essentially a blank cheque to the company – we keep paying until the project is done no matter what it costs. It is impossible to cap the price.
Will the Treasurer rule out signing a cost-plus contract for the AFL stadium?
And if not how will the government ensure that Tasmanians don’t pay more than its $875m cap?