ASF compo could be limited to $1m

A COMMERCIAL law expert believes axed Spit developer ASF could sue the State Government for its costs to bid on the project but little more.

The Labor Government this week terminated a $3 billion integrated resort at The Spit by long-term preferred proponent ASF consortium.

ASF director Louis Chien said it would consider legal action, having spent tens of millions in four years across two separate projects, including the five-tower Spit plan.

Broadbeach commercial law expert Bruce Simmonds, a director for Parker Simmonds, said he doubted ASF could sue for much more than what it spent to win the tender or status as preferred proponent, estimating it would have been about $1 million.

“If put to tender, under those documents it will state grounds if they change terms of the tender agreement, then they can seek compensation for costs they incurred to put forward a bid.

“Usually what happens is they have meetings with Ministers or the department, put forward their proposal and would get green lights or be encouraged to do it.

“And if they said ‘Go ahead, it’s going to be approved’ then they can’t say they never gave the go-ahead, it wasn’t in writing when the actions of the government were saying it was OK.”

Mr Simmonds said if it had progressed to the stage of employing architects and engineers to do more detailed designs, the compensation case could be for a lot more.

State Development Minister Anthony Lynham said the Government had a clause in its contract with ASF allowing it to back out – but would not say if it was conditional on compensation or other factors.