West Gate Tunnel chaos as builders try to terminate contract

BUILDERS working on Melbourne’s West Gate Tunnel want to terminate their subcontract over soil contamination.

But the State Government insists tunnel work will continue while issues are resolved.

Toll road giant Transurban is delivering an alternative route for the congested West Gate Bridge with joint venture builders CPB Contractors and John Holland.

But in a notice to the Australian Securities Exchange yesterday, Transurban said it had received a document from the builders that “purports to terminate” their subcontract.

It said an issue with contaminated soil at the building site, including its disposal, was an unforeseen circumstance, meaning the contract could not be fulfilled.

But Transurban has advised the builders it does not believe the subcontract has been validly terminated.

The joint venture builders have also told Transurban they intend to continue work at the site.

The dispute comes a week after the builders told more than 100 workers they would be losing their jobs as a dispute over handling contaminated soil was stalling some works.

About 4000 workers remain working on the project.

Transport Infrastructure Minister Jacinta Allan reiterated that issues with soil contamination were known before Transurban signed a contract to build the tunnel and engaged builders.

She stressed it was up to them to find a resolution and continue work on the project — due to be completed by 2022 — while they did so.

Opposition Leader Michael O’Brien said the contract issue threw the project into “absolute chaos” that would make it even harder for the tunnel to be finished on time.