Decmil drops legal action against Town of Port Hedland

Civil engineering and construction group Decmil has dropped legal action against the Town of Port Hedland over a multi-million-dollar contract spat.

The town announced that Decmil had ceased legal action in relation to the contract signed for the construction of the Milpaku Kuma/Port Hedland Community Centre, officially opened in May.

It comes after Decmil lodged a writ in the Supreme Court to sue the Town of Port Hedland for $5.2 million allegedly owed under the contract signed in 2022.

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.

The major project was backed by $10 million from the state government and valued at $19.5 million once completed.

Sport and Recreation Minister David Templeman travelled to the Pilbara town for the ribbon cutting ceremony with Port Hedland Mayor Peter Carter in May 2023.

In a statement, the Town of Port Hedland defended its “robust” contract management and tendering processes.

A spokesperson reiterated that the town was prepared to defend the claim that it was liable for more than $5.2 million under the contract with Decmil.

“Legal action of this nature has the capacity to damage the town’s reputation, given the public scrutiny," they said.

“However, the town was notified [last] week Decmil will not be pursuing legal action.

“The Town of Port Hedland is committed to a bold infrastructure program over the next decade to deliver quality amenities to improve liveability and make Hedland an attractive place to work and live.”

Decmil declined to comment.