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CPB Contractors and John Holland Invoke Force Majeure over Soil Contamination in West Gate Tunnel Project

Infra News - Published on Thu, 20 Feb 2020

Image Source: West Gate Tunnel Project
Toll-road operator Transurban and developer of the West Gate Tunnel project in Melbourne have notified Australian Securities Exchange that the CPB Contractors and John Holland contractors on the scheme wish to withdraw from their contract over contaminated soil, which constituted a force majeure event that allowed their contract to be terminated but Transurban has refused the request and it does not consider the contract validly terminated.

The builders warned Transurban six months ago that more PFAS chemical had been found in the soil than expected, and talks have been under way since then on resolving the problem. Now the builders have used the force majeure clause to stop work on the tunnel, which is the main element of the scheme.

The dispute has centred around who will pay the extra cost estimated to be as much as $675 million to dispose of the contaminated soil.

PFASs (perfluoroalkyl and polyfluoroalkyl substances) are a group of more than 4,700 chemicals that are based on carbon and fluorine atoms, and used to make a wide variety of everyday products. There are concerns that some of these chemicals pose a health risk to humans.

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Posted By : Yogender Pancholi on Thu, 20 Feb 2020
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