Construction of the 12-kilometre line,linking Circular Quay with Randwick and Kensington in the city’s south-east,has been dogged by delays and cost blow-outs.
A section of the light rail construction works on Devonshire Street in Surry Hills.Credit:Louise Kennerley
A completion date of May 2020 was recently forecast,about 14 months behind schedule,whilecosts have soared$500 million to $2.1 billion.
Spanish builder Acciona blames Transport for NSW,alleging it failed to disclose in the early stages it did not have Ausgrid's agreement over how critical underground cables should be handled.
The members of the class action are seeking compensation for mental anguish and millions in lost turnover allegedly caused by road closures,barricades and excessive dust,noise and vibrations.
They span family-owned small businesses in the suburbs to large corporations – such as hotels – based in the CBD,with individual claims worth up to about $5 million.
The business owners have rejected Transport for NSW’s claim the disruptions were inevitable,arguing it failed to effectively plan the project and made dozens of changes when work was already under way.
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"The way they've gone about it,in terms of closing the whole route off for the whole time has been really inefficient,"Ms Birch said."It's unfair to expect a business to survive for two to four years without financial support."
But Transport for NSW said in court documents that the steps it might have taken to avoid disruptions were constrained by the “financial and other resources available to it”,which were"not open to challenge"by the plaintiffs.
Transport for NSW's defence has recently been taken over by its insurer's solicitors. It scored a win in court this month,when Justice Peter Garling ruled it could drag the construction companies into the dispute.
Transport for NSW will argue that ALTRAC,the consortium overseeing the project,and Acciona,the building subcontractor,should be liable for any harm suffered by the retailers.
In its cross-claim against the companies,Transport for NSW argued it did not have direct supervision or control over construction work and was not responsible if ALTRAC and Acciona failed to meet their contract terms.
The light rail being constructed in Randwick last year.Credit:Janie Barrett
Under those terms,it argued,the contractors had to ensure there were not “unreasonable” levels of dust,noise or vibrations and that the work did not “unduly interfere” with the activities of residents and businesses.
Acciona was required to “diligently progress"construction and “avoid or minimise"delays.
Acciona and ALTRAC will fight the allegations in the cross-claim. The retailers argued involving the contractors would add to the “size,scope,complexity and cost” of the proceedings.
But Justice Garling disagreed,finding the addition of the two defendants would not “make the case any more complex than it already is”.
The lawyer for the retailers,Rick Mitry of Mitry Lawyers,said his clients had a"very strong"case.
"Certainly Transport for NSW has a lot to answer for and they know that – that's why they're joining other parties and the insurance company to the case,"he said."We've got them on the run."
The matter was adjourned to July 26.