28/07/2016 - 13:32

Monadelphous loses Supreme Court fight

28/07/2016 - 13:32

Bookmark

Save articles for future reference.

TransAlta Corporation has had a small win in the Supreme Court after successfully defending an entitlements claim by Monadelphous Group, but the engineering firm is still pursuing about $33 million from a joint venture comprising a Pilbara-based subsidiary of the Canadian power utility and DPB Development Group.

Monadelphous loses Supreme Court fight

TransAlta Corporation has had a small win in the Supreme Court after successfully defending an entitlements claim by Monadelphous Group, but the engineering firm is still pursuing about $33 million from a joint venture comprising a Pilbara-based subsidiary of the Canadian power utility and DPB Development Group.

The claims relate to a $110 million contract awarded to Monadelphous in early 2014 for work on a gas pipeline for the Fortescue River Gas Pipeline, which was being carried out by a joint venture between DDG, which awarded the contract, and TransAlta (through its subsidiary TEC Pilbara).

DDG is a subsidiary of NSW-based DUET Group, which operates the Dampier to Bunbury pipeline.

The work involved construction of a pipeline from a compressor on the Dampier to Bunbury pipeline to Fortescue Metals Group’s Solomon Hub in the Pilbara.

The Supreme Court dismissed the Monadelphous claim today, saying there were no grounds to demand an undisclosed amount of funds be handed over by TransAlta, which acts as guarantor for TEC Pilbara.

“In all the circumstances, I have been satisfied at the end that TransAlta has made good an overwhelming defence argument,” Justice Kenneth Martin said in his judgement.

“TEC’s obligations under the deed of guarantee, in respect of a payment of moneys to Monadelphous, ended at May 6 2015.

“They were not the subject of any preservation against TransAlta by a relevant notification from Monadelphous that can possibly be met before time ran out for extra claims.”

However, the Perth-based engineering group is still seeking about $33 million from DDG and TEC Pilbara for cost blowouts on the project.

Monadelphous is seeking $19 million from DDG and $14 million from TEC Pilbara, on the grounds of delays to the start of work under the contract, which pushed construction into the wet season, causing more delays.

Practical completion of the contract occurred in March last year, rather than the originally pinned December 2014 deadline.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options