Court blocks Downer EDI from adding new claims to John Holland dispute

Queensland's highest court has stepped in to settle a critical contract dispute involving a major rail construction project.

Artist's impression of the Torbanlea train manufacturing facility which is near completion.

The Supreme Court has stepped in to settle a dispute between Downer EDI Rail and John Holland Queensland in the construction of Downer’s $240 million train manufacturing facility at Torbanlea.

Downer is the managing contractor delivering the Queensland Train Manufacturing Program, which includes the 65 trains to be built in Torbanlea starting in 2026, construction of the Torbanlea facility which is almost complete, and maintenance of the Ormeau facility.

John Holland is subcontracted to Downer to deliver the Torbanlea facility.

The judgment, delivered by Justice Sean Cooper in November 2025, centred on a contractual clash arising between the two engineering giants, which entered into a design-and-construct contract containing a detailed dispute-resolution regime, including an expert determination process.

In July 2025, John Holland issued two notices of dispute relating to alleged acceleration costs and Cultural Heritage Management Plan issues.

Downer later referred those disputes to expert determination, and both parties agreed to appoint barrister Mark Dempsey SC as an Independent Expert.

But friction emerged almost immediately, according to the court documents.

Downer claimed it was entitled under the Expert Determination Rules to bring a “cross-claim” during the process.

John Holland argued that the expert’s jurisdiction was limited to the disputes as formally notified and negotiated under the contract, and nothing more.

* This article was created with assistance from AI.

Originally published as Court blocks Downer EDI from adding new claims to John Holland dispute