Leighton’s $191m rail link claim

LEIGHTON Holdings announced it will incur a loss on the Mandurah rail project after lodging claims with the state government totalling $191 million.The company also confirmed its Leighton-Kumagai joint venture had lodged $140 million in additional claims with the Western Australian government.Leighton was originally awarded a contract worth $342 million for the city tunnel section of the $1.5 billion project. The state government maintains that LKJV entered into the contract knowing it had an obligation to absorb almost all of the risk. Leighton says the claims have been progressively submitted since the project began and represented the expected value of its entitlements on the project. Planning and Infrastructure Minister Allanah McTiernan said there was nothing in the document that would lead the government to believe there was any substance to the additional claims.


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