Monadelphous works to resolve legal dispute

Perth-based engineering group Monadelphous is attempting to resolve a dispute with thyssenkrupp Industrial Solutions after it launched legal action against Monadelphous this week over vital documents it allegedly withheld for infrastructure it built at BHP’s South Flank project.

Through a writ filed in the Supreme Court on Monday, thyssenkrupp appealed for a court declaration to force Monadelphous to hand over various documents essential for the operation and maintenance of two iron ore stackers and a reclaimer Monadelphous constructed and tested at BHP’s $3.4 billion iron ore project as part of a subcontract.

According to the writ, thyssenkrupp subcontracted certain works to Monadelphous as part of a contract it held with BHP in September 2018.

The terms of the contract included reaching practical completion of the project between December 2020 and February 2021 and handing over the documents required for the operation and maintenance of the infrastructure, including signed drawings, a manufacturer’s data report with redline drawings, inspection and test plans, test results, reports and check sheets. 

In a letter dated February 2021, Monadelphous claimed to have achieved practical completion of the first component of the subcontract and, the following month, sent a second letter claiming it had completed the final component.

But despite the claims, thyssenkrupp said in its writ that Monadelphous failed to produce the documents required.

Thyssenkrupp claims it is unable to comply with its operations to commission and complete the contract and is now rendered liable to BHP for damages for breach of contract, prompting it to take legal action against Monadelphous.

A spokesperson from Monadelphous said the issue had now been resolved, but a spokesperson from thyssenkrupp told Business News this afternoon that thyssenkrupp was considering its position in light of a “concession” made by Monadelphous.

The spokesperson would not elaborate on the nature of the alleged "concession", but confirmed that the legal proceedings remained on foot.

The spokesperson would also not be drawn on how soon the matter was likely to be resolved.