Hewatt Earthworks, the Canberra-based construction company hired to work on Canberra's largest infrastructure project, owes the ACT Government more than $600,000 of work on projects in addition to the Majura Parkway contract.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The company formally entered voluntary administration with Sydney based PPB Advisory on Thursday after financial troubles led to the cancellation of work on the Majura Parkway.
PPB director Alan Walker said Hewatt Earthworks was directly engaged by the ACT Government to work on the extension of the Horse Park Drive project and confirmed that work on the project had also stopped.
The extension of Horse Park Drive in Gungahlin will connect local residents with the Majura Parkway once construction is completed.
“There’s not a huge amount of work outstanding – probably another half a million dollars of work with another $100,000 owing on a separate project on the road,” he said.
Mr Walker said work on Horse Park Drive was expected to be completed in the coming months although could not speculate on when work would recommence.
“We’ve met with the government and we’re working together to find a way to get work happening as soon as possible,” he said.
“We’ve had positive discussions, we’re hopeful a decision will be reached soon - there are a just a few final points to get comfortable with.”
Mr Walker said around 90 per cent of work on the Horse Park Drive was completed before the company went into administration, but that Hewatt still had work outstanding with the Canberra Airport although this work was considered minor in nature.
ACT Treasurer Andrew Barr told the ACT Assembly yesterday that Horse Park Drive was the largest of eight contracts the company had with the Government. Two projects related to Horse Park Drive and both were 95 per cent finished, except for the likes of street signs, road markings and landscaping.
There were not anticipated to be any budgetary problems, due to substantial retentions and other guarantees from Hewatt held by the Government, he said, but there could be minor delays.
The other six projects had been completed and were in the "defects/liability" period.
The Canberra Times revealed on Monday that Hewatt Earthworks abandoned work on one of Australia’s largest wind farms near Cooma, a Royal Australian Navy Base near Nowra and the Orange Airport.
Hewatt Earthworks has also completed a number of projects for Territory and Municipal Services and the Economic Development Directorate and remains responsible for any defects in these projects.
These projects include works on the Kings Highway southern deviation, pavement works on Sutton Road, and the reconstruction of the intersection at Cotter Road and Kirkpatrick Street.
But Mr Walker was hesitant to state when work would recommence of the Majura Parkway, despite the ACT Government’s insistence that the project would be completed on schedule.
“It’s really not in our hands – we’re working closely with Fulton Hogan who are likely to appoint another contractor to replace Hewatt Earthworks.”
A Fulton Hogan spokeswoman said there were approximately 40 workers employed by Hewatt for the Majura Parkway project when it passed into administration, along with another 11 professional staff members.
“Fulton Hogan expects to employ eight of the 11 Hewatt professional staff who were based on the project,” she said.
“It is understood that professional staff members not employed by Fulton Hogan have accepted, or are considering offers, from other employers.”
The company also expects to employ more than 80 per cent of Hewatt’s subcontractors and suppliers by the end of the week, with many of these based in the ACT.
“Over the coming weeks we are also planning to offer employment to as many of Hewatt’s employees as possible,” said the spokeswoman.
Fulton Hogan remains committed to completing the Majura Parkway project on time and within budget despite the withdrawal of Hewatt Earthworks.
The construction company confirmed that all Hewatt machinery had been removed from the site although they were not aware where the equipment had been taken to.
Comment was sought from the ACT Government.