Construction contractor York Civil has ceased operations, and while its joint venture partner is expected to finish work at the Matagarup Bridge, there is uncertainty around a recently won $30 million contract at Port Hedland.
South Australia-based York, which is finalising construction of the Matagarup Bridge and was recently awarded a $30 million contract for upgrades at Port Hedland, was placed into voluntary administration last week.
In a statement today, Ferrier Hodgson partner Martin Lewis said the business had insufficient cash resources to continue trading and a buyer had not been forthcoming.
He said joint venture agreements would ensure works at the Swan River pedestrian bridge would continue.
“It’s our understanding that any joint venture projects York Civil is a party to, will be continued by the remaining joint venture partners,” he said.
“Arrangements have been made with the respective joint venture partners for a continuation of works on the North Terrace tram extension, Torrens to Torrens upgrade and Swan River Pedestrian Bridge.”
The Pilbara Ports Authority, which awarded the contract at Port Hedland, said in a statement that works had not yet commenced.
“PPA is working with York Civil’s administrators, Ferrier Hodgson, and other relevant parties to minimise disruption to port operations and shipping,” the authority said.
York was established in 1990 and employed about 190 people, primarily in Adelaide, with 18 workers in WA.
Mr Lewis said employees would be paid out.
“We expect any shortfall of employee entitlements will be met through the fair entitlements guarantee scheme (should the company be placed into liquidation at the second meeting of creditors), however it is too early to form a view on the likelihood of payment to unsecured creditors.,” he said.
A creditors meeting will be held on Thursday.
A joint venture between York and Italian company Rizzani De Echer was chosen to build the $94 million pedestrian bridge in 2016, which was officially opened last month.
The bridge was one of several major projects won by York in WA in 2015 and 2016.
In March 2016, it was awarded a $32.1 million contract to build the new Charles Street bus bridge by the state government, which was completed in July last year.
