Transport Administration fires NCC from mega project

The Transport Administration is terminating the contract for the Korsvägen construction in the West Link. The contractor WLC, a consortium between Ways & Freytag Ingenierbau and NCC, is being fired.

“When we see cost increases of almost 400 percent, we feel cheated. Our task is to build a facility that Gothenburg and all of Sweden can be proud of, not to participate in money disappearing without explanation,” says Patrick Guné, head of Major Projects at the Transport Administration.

The parties have been at loggerheads since the Transport Administration claimed that the project had suffered unacceptable cost increases. But also that WLC had favored collaboration partners in procurements.

“A tough decision”

NCC struck back and argued that the authority’s statements were both aggressive, serious and completely incorrect.

Now the Transport Administration has had enough.

“We have a responsibility to passengers and taxpayers. Terminating the contract is a tough decision, but now it’s necessary to put our foot down to move forward and deliver what West Sweden needs – a reliable and modern railway,” continues Patrick Guné.

The authority has directed a reclaim of 7.5 billion kronor against WLC. And the new cost forecast for the West Link amounts to 49.3 billion kronor at today’s price level, with the reclaims included.

WLC disputes the termination

WLC announces in turn that they dispute the termination.

They believe they have not been given sufficient time to analyze and respond to the Transport Administration’s report. And that the circumstances the authority invokes have been known to the agency for a long time.

NCC’s CEO, Thomas Carlsson, also flags a long and drawn-out legal process against the Swedish Transport Administration.

“I don’t see any other possibility than that this will become a major legal aftermath. The only winners here are Sweden’s lawyers. The real big losers are the people of Gothenburg, who will most likely get a facility that will be further delayed,” he says to GP.