Omega Construction on the brink

BGC Contracting and Laing O'Rourke have terminated their contract with Omega Construction on the Northlink road project after the sub-contractor disclosed it had major financial problems.

BGC and Laing O'Rourke, through their Great Northern Connect, are currently building the central section of the $1.1 billion Northlink project.

They sub-contracted Bibra Lake-based Omega for bridge construction work.

“GNC terminated its arrangement yesterday after Omega Constructions advised GNC it had major financial problems,” a Main Roads Western Australia spokesperson said.

The problems at Omega follow the collapse this year of several contractors working on major state government projects.

Maddington-based All Earth Group, which had been working on the Forrestfield Airport Link and a LandCorp sub-division, went into administration last month.

That followed the winding up of Adelaide-based contractor York Civil, which was one of the head contractors on the state government’s Matagarup Bridge project.

Another contractor that recently went into administration was VCS Civil and Mining, which had also been working on the Northlink roads project.

The Main Roads spokesperson said the issues facing Omega would have no negative impact on the Northlink WA project.

“GNC will source a replacement contractor to complete the works undertaken by Omega Constructions,” the spokesperson said.

Main Roads said it would be urgently engaging with all involved parties to ensure the best possible outcome was achieved.

Omega’s past clients include the Water Corporation, Main Roads, Horizon Power and the City of Mandurah along with resources companies Worley Alumina and Rio Tinto, according to a project listing on its web site.

Many of its projects have been bridges, underpasses and waste water treatment plants.

BGC and Laing O’Rourke were awarded a $417 million contract last year to build a 17-kilometre Northlink section between Reid Highway and Ellenbrook.

CPB Contractors and John Holland have separately been contracted to build two other sections of Northlink.

Business News has sought comment from BGC, Laing O’Rourke and Omega.