Bitter war between contractors breaks out on North East Link

Cost blows are already causing drama on the North East Link with a bitter battle emerging between contractors over the project.

A subcontractor on the North East Link has lashed out at the project’s builders and the state over a dispute that has left it owing creditors $16m.

Quinn Civil was hired for early sewerage works but a bitter battle has emerged over mounting costs and additions to the project.

Construction shutdowns earlier in the year added to delays and the company has claimed major changes to its work, including the construction of a new pump, blew out the scope of the contract by millions of dollars.

In October it asked for more cash to cover what it ­believed were legitimate ­variations. Quinn estimates these costs had risen to as much $18m but this was rejected by major builder CPB, and the subcontractor packed up and walked off the job.

Both sides later reached an agreement on about $11m but Quinn’s contract was abruptly terminated, sending its money to other contractors and its family business into ­liquidation.

Managing director Pat Quinn said the company regularly did similar works and was an accredited contractor when chosen for the project.

An artists’s impression of the Eastern Freeway at Lyndhurst.

“The design we were first given was very poor,” he said.

“The new acid-protecting bypass pump alone added significantly to the initial cost.”

Mr Quinn said the risk in the project was also unfairly weighted. “We have now $16m worth of creditors unpaid due the actions of CPB and the state government,” he said.

“Many of these companies will soon fold like us. We just want that approximately $11m that was approved to be passed on to our liquidators.”

North East Link chief Duncan Elliot said he had been told all payments owed under the early contract with Quinn Civil had been made.

“Quinn Civil has lodged a range of commercial claims that are being worked through, many have already been ­resolved,” he said.

“As a result of Quinn Civil’s insolvency, CPB and the North East Link Project are working to ensure that Quinn Civil’s subcontractors can be re-­engaged directly with the ­project.

“We’re also assessing other ways to support affected businesses while the formal liquidation process runs its course.”

Opposition Treasury spokesman David Davis said a long established and respected engineering firm had been hung out to dry.

“We can’t be losing major firms like this and we can’t be seeing jobs put at risk,” he said.

“These savage contracts crunch firms because of an imbalance in power.”

Last month, the Andrews government revealed tunnels for the toll road would be lengthened by 1.9km under ­revised designs to reduce the project’s environmental damage. The changes were expected to cost an extra $2.1bn.