West Gate Tunnel builders head to arbitration after court win over Transurban
Builders on the West Gate Tunnel project have scored a victory in their effort to tear up the contract to build the $6.8 billion project after a Supreme Court Justice ruling the battle with Transurban should go to arbitration.
VIC News
Don't miss out on the headlines from VIC News. Followed categories will be added to My News.
Transurban has lost its court battle with the builders on the West Gate Tunnel project, with a Supreme Court Justice sending the dispute to arbitration.
John Holland and CPB Contractors on Friday scored a victory in their effort to tear up the contract to build the $6.8 billion project.
They have claimed major issues moving PFAS-contaminated soil have created significant and unforeseen delays and cost overruns.
Massive tunnel boring machines are sitting idle in the ground while a site for the soil is found, with hundreds of jobs shed as work has slowed to a crawl.
Justice Kevin Lyons ruled the battle between the builders and Transurban should be sorted out by a tribunal and found there was no need to link the Andrews Government into the process.
In his judgment, Justice Lyons said the issues raised by both sides were complex and should be heard by a single tribunal.
“This is in a context where every issue is in dispute and is hard-fought between the parties,” he wrote.
It comes after the Herald Sun revealed the project faced fresh roadblocks to resolve the toxic soil issue amid a parliamentary showdown.
“We acknowledge today’s decision by the Supreme Court and remain committed to working with the West Gate Tunnel project parties to resolve the matters at hand while continuing to deliver this much-needed project for Melbourne,” a Transurban spokeswoman said.
Companies bidding to hold the toxic soil are also currently waiting for environmental approvals, with local councils mobilising to fight against plans to dump in their area.
A government spokeswoman said:
“The ruling confirms what we’ve said all along - this is a dispute between Transurban and its builders.
“It’s time they resolve this outside of the court room and get on with building this vital project.”
MORE NEWS
500 POSITIVE CASES REFERRED TO COPS FOR BREAKING RESTRICTIONS
YOUTH LEADER ALLEGEDLY GAMBLED TAXPAYER DOLLARS