Leighton Contractors achieved a major milestone on Western Australia’s US$1.17bn Perth to Mandurah rail project in early June after holing through on the first of two tunnel drives 12 days ahead of schedule, (T&TI, November 2005, p10)

Sandgroper, the TBM used to excavate the tunnel under Perth’s central business district, broke through at about 8.30pm on 3 June local time about eight months after tunnelling started.

The 770m long 6.2m diameter tunnel runs from Perth’s Esplanade to Lake Street in the Northbridge district of the city. Tunnel workers were understandably jubilant at the breakthrough as was the state planning minister Alannah MacTiernan who said: “Well, I think it’s obviously a magnificent achievement and I think it answers all those critics who said that this couldn’t be done.”

The achievement was tempered by continuing wrangles on the controversial scheme with Leighton lodging its fourth claim to recover US$153M in cost overruns on the project. Leighton is in joint venture with Japanese contractor Kumagai Gumi on the project.

The claim, filed about 10 days after the tunnel breakthrough, was lodged in the state Supreme Court against Western Australia’s Public Transport Authority to cover the cost of removing contaminated material.

Leighton has lodged separate writs to cover the increased cost of materials and labour under the rise and fall provisions in its contract and damages from a construction union for delays caused by industrial action. Leighton has also sought a declaration that the authority was in breach of its insurance obligations under the contract.

Leighton is also set to lodge its fifth claim shortly that will relate to dewatering at the site.

Commenting on Leighton’s legal action, MacTiernan said: “In the case of Leighton, the parties are so far apart on some of the key issues that litigation will be necessary, as other governments around Australia have discovered.”