Decmil JV confirms $417m contract

Decmil and joint venture partner McConnell Dowell have finalised the main works contract for the Mordialloc Freeway project, six months after being selected by Major Roads Projects Victoria as the preferred tenderer.

Decmil has a 40 per cent stake in the JV.

At the time of gaining preferred tenderer status, Decmil chief financial officer Craig Amos told Business News the company was finalising the joint venture equity split.

In March, the project was estimated to cost around $375 million.

The two companies have already secured an early works and detailed design contract at the project valued at $25 million.

The main works for the Mordialloc Freeway are expected to be completed by the end of 2021.

The project primarily involves the construction of nine kilometres of freeway to link the Mornington Peninsula Freeway to the Dingley Bypass, which will create continuous freeway from Frankston to Clayton, which are suburbs in Melbourne.

It is the second major Victorian contract Osborne Park-based Decmil has secured this year.

In April, Decmil was been awarded a $105 million contract by Major Road Projects Victoria for Stage 2 of the Plenty Road Upgrade project.

The Stage 2 contract is expected to be finalised by mid-2021.

Last month, the contractor was one of the three companies invited by the state government to tender for the $69 million Denny Avenue level crossing removal.

Transport Minister Rita Saffioti announced that Downer, Decmil and John Holland were approached to provide tender submissions, after they were short-listed following an earlier expression of interest process.

Shares in Decmil rose 3.5 per cent to trade at 88 cents at 1.45pm AEST.