Second big North East Link contractor in financial strife

More issues involving contractors and the CFMEU are continuing to plague the $16bn build of the North East Link.

A second major contractor who worked on the North East Link has gone into administration.

A second major contractor who worked on the North East Link has gone into administration amid ongoing chaos on the project.

As a result, Bothar Boring and Tunnelling, which was in charge of a large section on the $16bn toll road, has left businesses worried that they will not be paid.

It comes just a year after another major contractor, Quinn Civil, went into liquidation and lashed out at builders on the motorway project over ongoing issues and contract changes.

The collapse of both companies has meant millions in unpaid debts to businesses and comes as the CFMEU has been delaying and disrupting the project for months.

In the latest escalation of ongoing industrial chaos, the union has stopped groups of workers from performing night shifts until the builders dump subcontractors that aren’t aligned with them.

Bothar Boring and Tunnelling which was in charge of a large section on the $16bn NE Link project has gone into administration.

They are also pushing for a statewide pay deal with CPB, part of the consortium contracted to deliver the mega project.

Bothar Boring and Tunnelling had replaced Quinn Civil in parts of the North East Link, and it’s understood earlier this year businesses sounded the alarm that the contractor was in financial strife.

Issues with late payments were raised with the North East Link Authority amid concerns companies already stung from the collapse of Quinn Civil would be hit with further financial pain.

Another concern raised with the authority was that CFMEU-linked businesses were demanding rates double what had been paid before, adding further financial stress.

FTI Consulting has been appointed to handle the administration of Bothar Boring and Tunnelling, which is limited to the Australian branch of the company.

“The company will continue to trade on a business-as-usual basis while the receivers conduct an independent assessment of the financial position of the entities … and determine next steps,” FTI Consulting said in a statement.

Northeast Road link project is apart of the Andrews government’s “big build” projects. Picture: David Crosling

North East Link chief executive Duncan Elliott said that the construction handled by these companies, a sewer relocation, had been completed.

“North East Link’s early- works managing contractor has advised that all payments owed under its contract with Bothar Boring and Tunnelling Australia have been made,” he said.

“With major tunnelling construction coming up, there will be many more opportunities for small and medium businesses to be part of the project – and we’re encouraging our contractors to consider the range of local suppliers available.”

When asked about the union tactics to limit night works, Mr Elliot said the issue was a matter for the builders.

“We encourage all parties in the construction industry, including unions, to work cooperatively together,” he said.

Although payments have been made to Bothar, companies subcontracted by the businesses are waiting to learn if they will be able to recoup the money owed to them.

Heavy rain over the past month has affected work on the project but it is still believed to be on schedule.