AUSTRALIA

MDC hits back in contract dispute

McConnell Dowell Constructors (MDC) said it would resort to arbitration in order to receive its proper contract entitlements after entering into a dispute with Environmental Infrastructure Limited (EIL) who have alleged that MDC has failed to fulfill a contract.

MDC agreed that it was employed as the turnkey contractor responsible for the design, construction and commissioning of a Biomass facility at Camellia in Sydney West for EarthPower Technologies Sydney Pty Ltd (EPTS), who are a subsidiary of the publicly listed EIL.

However, the company said that it had fulfilled the contractual requirements of the project and applied for a Taking-Over Certificate (TOC) early in June 2003. EPTS's representatives have declined to issue the TOC and McConnell Dowell have therefore issued a notice of dispute and also referred the matter to the Independent Engineers, GHD Pty Ltd, to make a determination.

If amicable resolution is not reached in the near future, McConnell Dowell said it will begin arbitration to receive its proper entitlements in accordance with the contract. The turnkey project is valued at approx $20million.

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