Decmil Southern wins $5.5m unpaid work claim against TMR

A contractor brought in to take care of $47million in safety upgrades on the Bruce Hwy between Gin Gin and Benaraby lodged a six-figure claim against the Transport Department.

Contractor Declim Southern, brought in to take care of $47m in safety upgrades on the Bruce Hwy between Gin Gin and Benaraby, has won a six-figure claim over unpaid work on the site.

The state government has been ordered to pay a contractor $5.5million over unpaid work on a $47.3million safety upgrade of the Bruce Hwy north of Gin Gin.

Decmil Southern Pty Ltd took the government’s Transport and Main Roads Department to adjudication over the non-payment, with a decision handed down in early September 2023.

The published QBCC adjudication shows Decmil claimed it was owed $11.8m for extra earthworks needed as the site was different to what had been expected based on the tender documents.

Decmil was engaged in March 2021 with the initial contract priced at $24.7m.

The upgrades, along a stretch of the highway halfway between Bundaberg and Gladstone, included road widening and safety upgrades.

In December 2021 Decmil wrote to TMR claiming changes in the job’s specification meant the cost of delivering the work had blown out to $41 million.

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The initial contract was for $24.7m, to upgrade a stretch of the Bruce Hwy about halfway between Bundaberg and Gladstone, but Decmil wrote to TMR claiming the specifications of the job had blown the price out to $41m. A deal was reached for a total of $33.8m, but a dispute then emerged over additional earthworks needed to finish the job.

An agreement was reached between the parties for a total of $33.8m, but a dispute soon emerged over the amount of earthworks on the job.

The documents show TMR claimed the earthwork costs were included in the $33.8m deal whereas Decmil said there were still costs incurred beyond that.

Adjudicator Christopher Thompson split the difference, denying Decmil’s full $11m claim but still saying TMR had to pay up more than half of the bill.

Mr Thompson found TMR owed $6.6m over the earthworks, but pared this back to $5.5m due to liquidated damages against Decmil.

That $5.5m is on top of the $33m agreement.

The cost of the adjudication will be split evenly by the parties.

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A Decmil spokesman said the company accepted the adjudicator’s decision.

A TMR spokesman said the department “has paid the adjudicated amount in accordance with the decision and the statutory regime which facilitates prompt interim payments to contractors”.

“The Department is currently considering its position under the contract and whether it will take any further steps,” he said.