New head contractor selected for $45M Princes Highway upgrade at Dignams Creek

Fulton Hogan has been selected as the new head contractor to complete the delivery of the $45 million Princes Highway upgrade near Bega, at Dignams Creek, NSW.

The previous contractor, York Civil, was placed into administration on 6 August and all work stopped on the site.

Federal Minister for Transport and Infrastructure Andrew Constance said the appointment of Fulton Hogan would ensure the completion dates of the project would remain unchanged, with expected completion by mid 2019, weather permitting.

“Roads and Maritime Services put together an immediate action plan to ensure those subcontractors affected by the voluntary administration receive their entitlements,” Mr Constance said.

“This involves 29 subcontractors, about 10 of whom are locally based.

“It is important that businesses who work on NSW Government infrastructure projects, particularly small businesses, have confidence that they are supported and that they will be paid,” he said.

Mr Constance said the project is around 70 per cent complete, with work almost completed on both Dignams Creek Bridge and Dignams Creek Road Bridge.

“The aim is to have the work site reopened as soon as possible, and the appointment of Fulton Hogan will ensure this occurs,” Mr Constance said.

“In the next three months, work will shift to road surface upgrades, along with drainage upgrades along the new alignment.

“A new wildlife crossing has also been built, as part of the project, beneath the new section of the highway to provide a connection between the national parks.”

York Civil had been engaged by Roads and Maritime NSW on three other projects, including the Schofields Road upgrade and the Pacific Highway Halfway Creek project.

“Roads and Maritime will ensure subcontractor’s entitlements are met for all of these projects,” Mr Constance said.

Mr Constance said as part of Roads and Maritime’s commitment to improving the management of major construction projects, the agency has taken steps to ensure greater transparency of contractor financial performance.

“The new contractual arrangements provide Roads and Maritime the mechanism to require contractors to provide proof of payments to their subcontractors and suppliers.

“The changes mean that Roads and Maritime has the ability for early intervention in the event that subcontractors are not being paid. This can include paying subcontractors directly and offsetting against future contractor payments.

“Roads and Maritime has also tightened its due diligence in relation to its projects to include six monthly financial assessments of its major contractors.”