WICET and Monadelphous $400m court stoush continues
WIGGINS Island Coal Export Terminal's owners and one of the project's contracted engineering companies are stuck in a year-long legal stoush over contracts.
Monadelphous Muhibbah Marine, a joint venture between Monadelphous Group and Malaysia's Muhibbah Construction, has been granted 'practical completion' under two contracts to construct an approach jetty, ship berth and shiploader as part of the new terminal.
WICET has not certified final completion of the contracts while parties are in court.
It has been one year since MMM lodged its first claims with the Building and Construction Industry Payment Agency, with successful adjudication for payments relating to contracts of about $90 million. But MMM lost a claim for more than $327m against WICET on Friday in the Supreme Court of Queensland.
Since Monday Monadelphous Group said it would "vigorously defend" the proceedings, and will pursue a counterclaim in excess of $200m to recover costs associated with changes in scope and nature of construction works. Monadelphous considers it has "good grounds" for making the claims.
WICET is now exercising its rights to seek a final determination of the adjudicated claims in the Supreme Court proceedings.
WICET said it had been unable to properly assess MMM's claims as the company had failed to provide evidence and substantiation in support of its claims.
It claimed the payment was "both confused and confusing".
- June: MMM began launching three BCIPA adjudication applications claiming additional payments of $40m and awarded $81m or 18% of the claims.
- October: MMM first started Supreme Court proceedings to prevent WICET calling on bank guarantees.
- December: Judgement was given in WICET's favour after MMM lost its case in the Court of Appeal.
- June 12: The Supreme Court rejected MMM's claim to $32m of the bank guarantee proceeds, with confirmation WICET is entitled to the proceeds.
- June 12: WICET also called on bank guarantees of about $6.9m in claims with Sinostruct, a Monadelphous Group company that provided fabrication works at the terminal.