Decmil, Town of Port Hedland in contract spat

The Town of Port Hedland will defend legal action instigated by Decmil Australia over an alleged contractual breach tied to a $19 million project that was backed by the state government.

Civil engineering and construction group Decmil is suing the Town of Port Hedland for $5.2 million allegedly owed under a contract signed in 2022, according to a Supreme Court writ.

The town awarded the contract, valued at $18.1 million, to Decmil in January 2022 for the construction of its popular new community centre complex, which was officially opened in May 2023. 

When the new centre was unveiled it was described as a $19.5 million facility, backed by $10 million from the state government and the remainder covered by the town.

In a statement to Business News, the Town of Port Hedland confirmed it entered into a fixed-price contract with Decmil for construction of the Port Hedland Community Centre.

“It will defend court action initiated by Decmil Group,” the town said in a statement.

“The town is unable to comment further while the matter is before the courts.”

According to the writ, Decmil claims the Town of Port Hedland is liable under the contract for $5,244,490.71, plus interest.

Business News understands the dispute is over a final payment under the contract.

The contract's scope of work included the demolition of the existing turf club buildings and construction of a new community building and car park, as well as landscaping and road works, according to Decmil's ASX statement at the time of the award. 

Located on the old turf club site, the now operational two-storey facility boasts a function space and four community areas, alongside large gardens.

It also has a new judges' broadcast tower at the finish line of the next-door horse-racing course around the town oval, alongside a TAB and stewards’ rooms.

Sport and Recreation Minister David Templeman travelled to the town for the ribbon cutting ceremony with Port Hedland Mayor Peter Carter.

The writ was lodged by Decmil Australia, under parent company Decmil Group, on January 23.