Contractors win big

Contracting companies Abigroup, Macmahon Holdings, Laing O'Rouke and BGC Contracting have been the major beneficiaries of multi-million dollar road contracts awarded in Western Australia in the past two months.

Abigroup was last month announced as the preferred tenderer for a $58 million contract to finish the Geraldton Southern Transport Corridor.

Abigroup will design and construct the final 8.7-kilometre section which is due for completion in 2010.

The contract marks Abigroup's first major success in WA after the Sydney-based company established a Perth office in July 2007.

Macmahon won a $78 million contract to extend Reid Highway with the construction of a 2.6 kilometre, four-lane, dual carriageway between West Swan Road and Great Northern Highway.

This follows its recent completion, in conjunction with GHD and Coffey, of a $150 million road between Tom Price and Karratha and its $111 million Mitchell Freeway extension, due for completion in September this year.

Macmahon chief executive Nick Bowen said the company had grown rapidly in the past five years and has undertaken some of WA's major road projects.

"Through our work on projects including the Mitchell Freeway Extension, Great Eastern Highway, Millstream Link and the Eyre Highway Upgrade...Macmahon has an excellent working relationship with Main Roads WA," Mr Bowen said.

Team Savannah, a joint venture between Laing O'Rouke and BGC Contracting, is also cashing in, having won an $80.8 million upgrade package for the Great Northern Highway in the Kimberley.

The project involves construction of a 160-man camp, two new bridges and 20 kilometres of road. It is due for completion in October 2009.

This follows Laing O'Rourke's recent completion of its work on Fortescue Metal Group's rail line in the Pilbara, which included 285 kilometres of tracks and eight bridges.

The spate of big road contracts reflects a major state government investment, which has injected more than $1.4 billion into WA roads in 2008 and 2009.