Two contractors of CBH Group's rapid rail project are in a legal dispute over a multi-million-dollar settlement.
Two contractors of CBH Group's rapid rail project are in a legal dispute over a multi-million-dollar settlement.
Pacific Industrial Company has lodged a writ in the Supreme Court of Western Australia, naming Sydney-headquartered Martinus Rail as the defendant.
In the writ, the Naval Base steel supplier claimed it was owed a little more than $2 million from Martinus as part of a settlement relating to a subcontract for CBH’s rail-out loading facility.
CBH awarded Martinus Rail and Aerison key contracts on the construction of its rapid rail and outloading project near Broomehill in 2023.
In mid-2023, Martinus Rail and Pacific Industrial signed a subcontract for the latter to do works at CBH’s project, according to the writ.
Pacific Industrial alleged disputes had arisen over the subcontract, and performance of the works, by September 2024.
In the writ, Pacific Industrial claimed it sought $12.2 million for delay costs and progress payments from Martinus.
Martinus disputed the claims and alleged it was Pacific Industrial that had failed to comply and fully demobilise from the project site by the deadline.
The writ said Martinus sought about $2.2 million from Pacific Industrial, mainly to cover the railway contractor for liquidated damages under its head contract with CBH.
Pacific Industrial disputed the claims, including Martinus’ allegation that it suffered loss because of Pacific’s continuous and intentional breaches.
According to the writ, Pacific Industrial and Martinus entered into a settlement agreement in October 2024.
As part of the settlement, Martinus agreed to pay about $4.8 million to Pacific Industrial in six instalments with the biggest payment of $2 million to paid by March 25.
Pacific Industrial alleged, in the writ, that Martinus failed to pay the final instalment of $2 million by the deadline.
The steel supplier seeks a court order for Martinus to pay the alleged debt, interests, and costs, the writ shows.
Business News has contacted Martinus Rail for comment.
CBH’s rapid rail and outloading project in Broomehill, comprising a 2.1-kilometre rail siding, was completed in early 2025.
