16/04/2021 - 10:00

Pindan launches legal action over Rio mine works

16/04/2021 - 10:00

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Construction company Pindan Contracting is suing one of its subcontractors for allegedly failing to complete work as part of a $90 million contract it held with Rio Tinto.

Pindan launches legal action over Rio mine works
Construction group Pindan Contracting is suing The Complete Group for allegedly failing to finish work as part of a $90 million contract it held with Rio Tinto. Photo: Rio Tinto

Construction company Pindan Contracting is suing one of its subcontractors for allegedly failing to finish work as part of a $90 million contract it held for the construction of accommodation at Rio Tinto’s Gudai-Darri (formerly Koodaideri) iron ore mine.

In October 2019, the mining giant awarded Pindan Contracting a contract to design and construct accommodation for the project’s main village, including 470 rooms, eight laundries, a 1200-person dining hall, gymnasium, a cafe, administration office, and shop.

In that same month, Pindan Contracting subcontracted Wattleup-based site services company Complete Hire and Sales, trading as The Complete Group, to provide services as part of the development

But in a writ filed in the Supreme Court this week, Pindan Contracting claims The Complete Group breached the subcontract, failing to progress and complete works by the specified dates and in accordance with drawings, specifications and directions.

Pindan further alleged that the company failed to file documents, including those necessary for the discharge of its obligations and liabilities, and failed to remediate works undertaken that were deemed defective or not in compliance.

In May 2020, Pindan advised The Complete Group of its failure to achieve practical completion and wrote a letter to the company terminating the contract.

In November 2020, Pindan wrote to the company again certifying that it had suffered or incurred costs, loss and damages in the order of $816,000 and indicated that that figure was likely to increase.

According to the writ, Pindan has since had to spend $1.1 million engaging other contractors and suppliers to carry out and remediate the non-compliant work and an additional $276,000 on overhead costs.

Pindan is now claiming liquidated damages in the order of $678,920, as well as damages for the breach of the contract, legal costs and full indemnity for damages for breach of subcontract; including those yet to be suffered.

Pindan Contracting is one of four Pindan Group construction entities, which currently ranks as one of the state's largest construction groups.

In 2016, Singaporean company Oxley Holdings acquired full ownership of Pindan Group.

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