Monadelphous defends Qld record

Monadelphous Group has defended its handling of a dispute with Queensland customer Wiggins Island Coal Export Terminal, following allegations its work was defective and that it had improperly obtained confidential information.

Monadelphous and Wicet have been in dispute since October last year.

The dispute relates to construction projects undertaken by joint venture company MMM, which is owned by Monadelphous and Malaysia's Muhibbah Engineering.

The works included an approach jetty, a ship berth, and a shiploader for the coal export terminal in Gladstone.

Wicet has made a $130 million claim against MMM for disputed payments, with press reports this week referring to a potential damages claim for defects.

Monadelphous said today it had no knowledge of this claim but would comply with its contractual obligations “including those that relate to any genuine defects that may exist”.

The media reports also alleged Monadelphous inappropriately obtained confidential information belonging to Wicet.

“The information in question was received in the ordinary course of business,” Monadelphous said in a statement.

“In order to avoid unnecessary legal proceedings MMM has agreed to return the information to Wicet.”

Monadelphous said it remained very confident it had met its contractual obligations and would continue to vigorously pursue its claims to recover money owed.

The contractor announced in June that it planned to lodge a $200 million counterclaim against Wicet “to recover costs associated with changes in scope and nature of the works required to be completed, and the value of the bank guarantees drawn down”.

It also expected to lodge further claims with Queensland’s Building and Construction Industry Payment Agency, after obtaining successful adjudication for payments totalling about $90 million.

The company said that, during the past 25 years, it had never instituted legal proceedings against a customer, nor had any customer previously filed a similar claim against the company.