Family company to sue NSW Government over light rail fail
EXCLUSIVE: A family-owned excavation company said it’s had to lay off 40 staff and refinance after working with Transport for NSW on the light rail project. VAC Group is suing for $4 million plus damages, claiming being subject to “conduct likely to mislead or deceive”.
Southern Courier
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EXCLUSIVE: A family-owned excavation company said it has had to lay off 40 staff and refinance its business after working with Transport for NSW on the beleaguered Sydney Light Rail project.
Queensland contractor VAC Group is the second company to file a lawsuit against the NSW Government, claiming it too had been subject to “conduct which is misleading”.
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The group, which carried out early utilities investigation work between December 2013 and April 2014, said it had been in dispute over its final remuneration since May 2014.
“We’ve been through dispute resolution, adjudication, two attempts at mediation, negotiations and finally, after being bullied for three or four years we had no recourse but to go to the Federal Court,” VAC Group director Neil Costello said.
The company is now seeking more than $4 million, plus damages, from the government.
Federal Court documents filed last month on behalf of the group claim Transport for NSW engaged in conduct which was “misleading and/or deceptive, or likely to mislead or deceive.”
The documents claim beaches in contract have left VAC out of pocket.
“VAC was prevented from completing the works in accordance with the contract program by which VAC claims a total of 63.3 days extensions of time.”
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Mr Costello said a number of factors had delayed their investigative work, including uncovering old tram tracks, a lack of sufficient access, and a lack of planning approval.
“We had big issues with buried tram tracks that we were told didn’t exist.”
“I’ve been an engineer for 40 years ... I’ve never had the treatment that I’ve had on this project any time in my career.”
“I’ve even had to fight tooth and nail to be able to conduct the work safely” he said.
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He said with resources tied up “trying to fight this” he has had to put his properties up as security and put research and development projects on hold.
“We’re a small family business, not a large multinational company. I’ve had to lay off about 40 staff and I’ve had to refinance my business. I’ve never had an overdraft in my life.”
He said he had chosen to follow due process rather than “grandstand” but was forced to speak to the Southern Courier after the Federal Court documents came to light on Wednesday.
The latest court actions comes after light rail contractor Acciona launched a $1.2 billion court action claiming the government misled it on how many utilities would have to be moved during construction.
A Transport for NSW spokesman said the proceedings “are in no way similar or related to the current proceedings with Acciona.”
“VAC Group was engaged as a trenching contractor pursuant to a contract entered into in 2013. Work consisted of excavating road surfaces and footpaths to reveal underground utilities to be surveyed by another company,” a spokesman said.
“VAC were not involved in any relocation of utilities.
“The matter is continuing and it would be inappropriate to make any further comment at this stage.”
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NSW Opposition Leader Luke Foley said the government had mismanaged the project “from the outset”.
“Infrastructure NSW said don’t build it and the NSW Auditor General has made it clear that the project was being atrociously managed,” Mr Foley said.
“This has to be the contender for one of the most disastrous infrastructure projects in NSW’s history.
