The trouble has arisen between McConnell Dowell and EarthPower Technologies Sydney (EPTS). McConnell is the turnkey contractor for EPTS' food waste-to-energy plant in Sydney's west and is responsible for its design, supply, construction and commissioning.
Last month EPTS' representative, CMR Consultants, declined McConnell Dowell's request to issue a taking-over certificate (TOC) as in their opinion the works had not been completed in accordance with the contract.
McConnell Dowell issued a notice of dispute and the case is now headed towards a mediation and arbitration process. The request for the TOC has also been referred to the Independent Engineer, GHD Pty Ltd, to make a determination.
The company continues to suffer from bad press in Vietnam where a consortium of around 90 sub-contractors are claiming $US6 million for unpaid work at the Nam Con Son gas project.
The money is allegedly owed from MDC's contract to build a 50km subsea pipeline and onshore gas processing plant, to process gas from the Nam Con Son field. Work stopped on the project at least four times during its construction in an effort to keep the progress payments coming.
In April McConnell Dowell project director David Dwyer said the company would make the contractors an offer soon but he could not confirm that creditors with verified invoices would be offered the full amounts owing.
