Head contractors for the state government’s $1.86 billion Forrestfield Airport Link have claimed project costs escalated by more than $17 million in their lawsuit with engineering firm GHD.
Head contractors for the state government’s $1.86 billion Forrestfield Airport Link have claimed project costs escalated by more than $17 million in their lawsuit with engineering firm GHD.
The Forrestfield Airport Link project was built by a joint venture between NRW Holdings and international construction company Webuild, with the latter holding 80 per cent.
Perth-based engineering consultants GHD and the JV partners signed a tender design agreement over the 8.5-kilometre Forrestfield Airport Link rail line in 2016.
The relationship between the parties has since soured, with the JV partners launching legal action against GHD in the Supreme Court of Western Australia in mid-2021.
Counsel for the parties appeared in the Supreme Court for a hearing today, with Justice Gail Archer noting the legal proceedings had “dragged on” since a discovery application in May.
The JV claimed GHD’s design did not provide sufficient “space proofing” for amenities including air conditioners, equipment sheds and fire suppression, thus having to extend cross passages.
The plaintiffs’ lawyer, Nicholas Wallwork, told the Supreme Court the cross passages extension led to a substantial increase in the costs, being $17.5 million.
“This advanced design deviated substantially from the tendered design,” he said.
“The costs were caused by the defendant not providing an adequate tender design.”
Webuild and NRW also accused GHD of misleading and deceptive conduct, alleging the company misrepresented its experience in designing major projects.
In its defence, GHD claims the agreement was over a preliminary design for the joint venture partners, Webuild and NRW, to submit to the Public Transport Authority for tender.
The PTA awarded the project to the JV’s tender bid in 2016.
Barrister Simon Davis, representing GHD, said to the court the design was completed in less than three months.
“The nature of the tender was more limited than suggested in the clauses cited in the [plaintiff’s] statement of claim,” he said.
GHD also denied the suggestion that it was not an experienced engineering designer, Mr Davis said.
The next directions hearing has been scheduled for April 28, with the parties expected to file further documentation.
The rail line between Perth Airport and Forrestfield was initially announced for a 2020 completion but only opened last year.
