Losses for Pindan subcontractor hit $3m

A contractor of failed builder Pindan claims its decision to work on Rio Tinto’s $90 million Gudai-Darri mine camp has cost it $3 million, as it gears up to claw back the facilities it supplied.

The relationship between the two parties soured in 2020, just 12 months after Complete Hire and Sales signed a subcontract with Pindan’s contracting arm to design and supply buildings for the camp, which comprised 470 rooms.

The dispute reached the Supreme Court in April last year, when Pindan accused Complete Hire of costing it $1.3 million in repairs for “non-compliant work”.

But Pindan descended into administration four weeks later.

With the administration process now all but over, Complete has launched legal action against Rio Tinto subsidiary Mount Bruce Mining in a bid to claw back the funds.

According to the writ, Complete Hire claims Pindan Contracting failed to pay a $1 million bill for the works and, subsequently, it still holds the title in the facilities supplied.

Now, Complete Hire is demanding Rio Tinto hand back the facilities supplied or pay damages.

Though the outstanding bill is just over $1 million, Complete Hire’s lawyer Nick Kalmund told Business News the company’s losses on the project exceed $3 million.

He revealed Complete Hire had intended to pursue its losses by way of a counterclaim against Pindan, but the company collapsed before it could do so.

Instead, Complete Hire has chosen to pursue a claim centring around the title in the facilities provided, alleging it cannot be transferred under the subcontract until all payments have cleared.

If the facilities cannot be returned, Complete Hire is demanding damages.

Mr Kalmund said the claim against Mount Bruce Mining had followed a lengthy period of engagement between the two parties.

“Complete had registered its retention of title over the accommodation facilities it supplied on the Personal Property Securities Register, and is asserting its rights to be paid the balance due to it before unencumbered title can pass to Mount Bruce,” he told Business News.

“A component of Complete’s claim to title in the facilities concerns an outstanding sum payable after provision of testing and data documentation. 

“Generally, documentation of this kind is essential for the safe and efficient operation and management of mining accommodation facilities, particularly those situated in regions with higher wind ratings. 

“Complete has been ready, willing, and able to provide the documentation and receive the consideration necessary to pass title in the buildings to Mount Bruce. 

“Until that occurs, Complete maintains and will progress its claim to title in the facilities.”

Business News understands that whether Pindan claimed and received the sum payable after delivering the documents could form a key issue in the proceedings.

A spokesperson for Rio Tinto has previously told Business News it would not be appropriate to comment on the live legal proceedings.

Administrators from EY attributed a significant portion of Pindan’s troubles to the project, noting in a report to creditors that the group experienced “significant difficulties” collecting debts owed relating to the project.