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Monday, March 10, 2014

Cost overruns, delays mar destroyer project

Adelaide class FFGAn audit into a naval shipbuilding program being managed by the Department of Defence has found cost overruns, delays in delivery estimates and tensions between building partners.

Conducted by the Australian National Audit Office, the investigation into Defence's Air Warfare Destroyer (AWD) Program, which is building three Hobart-class guided missile destroyers for the Royal Australian Navy (RAN) at a cost of $8.5 billion, concludes that management will need to be sharply focused if it is to keep the project under control.

"The continuing detailed design, construction and productivity issues present a significant risk of further overruns in the cost of the project, as well as in the delivery schedule, and will require an ongoing management focus," the report says.

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