Builders accuse Transurban of stalling a resolution on West Gate Tunnel
The builders of the $6.7 billion West Gate Tunnel have accused Transurban of delaying a resolution in a major dispute that is holding up the project, with tunnelling on the toll road falling nine months behind schedule.
It comes as the Andrews government has now joined the Supreme Court case between Transurban and the project's joint building venture CPB Contractors and John Holland, despite initially insisting the dispute was a matter between the toll road giant and its contractors.
The West Gate Tunnel construction.Credit:Joe Armao
Barrister Neil Young QC, representing the builders, said at a hearing on Friday morning the builders wanted to resolve the dispute in arbitration, but Transurban was delaying this process.
The builders tried to rip up their contract with Transurban in January, claiming an impasse over how to manage soil contaminated with PFAS posed a force majeure event — an unforseeable circumstance that makes it impossible to fulfil the terms of the contract.
"We do have a concern, your honour, that there has already been substantial delay on the part of the plaintiff [Transurban]," Mr Young said.
"We terminated the D&C contract by a notice on the 28th of January, it's a long time ago. And we gave a notice of arbitration on the 2nd of March.
"It's our position that the proper pathway for this dispute to be resolved is the arbitral pathway ... we want to get on with it ... the plaintiff has been tardy in responding to that view of things."
Transurban and its builders were appointed an independent mediator in an attempt to resolve the legal fight, which will get under way on July 13. If this fails, a trial will begin on July 27.
Supreme Court judge Kevin Lyons said on Thursday the state government must be party to the proceedings, given it is a signatory to the project's design and construction contract.
Transport Infrastructure Minister Jacinta Allan said the state government would participate in the proceedings and urged the builders to end the legal fight.
"This is an important project and the state will patriciate in the court proceedings ... the ongoing message to the companies is stop having these battles in court, stop fighting with each other, get on and keep on delivering this very important project for the western suburbs and Victoria as a whole," she said.
The tolling giant is seeking an injunction in the Supreme Court to stop what it describes as a premature attempt by the builders to start arbitration over delays and cost blowouts on the toll road.
Transurban has argued the steps the builders took to resolve its dispute breached the terms of their $5 billion contract.
Court documents reveal Transurban came to the state government on several occasions with compensation claims that had been originally put to the company by the builders, but they have been rejected by the state.