Contractor warned to ‘step up’ and finish Sydney’s maligned M6 motorway or face the consequences | New South Wales politics

Two years after massive potholes ripped through the construction of a $3.1 billion Sydney highway tunnel, the consortium tasked with completing the project has issued a statement urging it to proceed with work or face possible legal consequences.

New South Wales highways minister Jenny Aitchison said a “default notice” was issued to contractor CGU on Monday, forcing it to restart work on the M6 ​​tunnel, which was 90% complete by May 1.

Excavations at the tunnel at Kogarah have been on hold since the sinkhole formed in March 2024 and a “challenging” geological feature was discovered nearby; Work came to a halt last June after the contractor claimed a design solution could not be achieved.

NSW premier Chris Minns criticized the unilateral switch to downstream tools, claiming the contractor was responsible for designing and building the tunnels.

Aitchison said the government had taken “decisive action” after trying to resolve the impasse, including submitting an engineering solution to CGU, a joint venture of CPB, Ghella and UGL.

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“Transport for NSW has issued a notice of default to CGU after more than two years of work to try to resolve the issues affecting this project,” he said in a statement on Monday.

“The Department has made clear that a technical solution is included in the current contract and that providing that solution is a reasonable community expectation.”

New 4km twin tunnels connecting southern Sydney to the wider motorway network were approved in 2019 and are scheduled to open in 2025. That date was postponed to 2028 after the sinkholes were opened, after which workers discovered a “high-angle reverse fault” in the bedrock in the same 245-meter section of the project.

In his NSW transport forecast on Tuesday, Aitchison said he had concerns CGU would not be able to deliver the project safely and feasibly, but he expected the company to meet its obligations.

“We hold the contractor accountable for the commitments they made when signing the contract,” he told the committee.

“I hope we can come to a solution.”

He said he could not provide information on additional costs or a possible completion date due to ongoing legal negotiations, but the prime minister had previously ruled out spending any additional money on the project.

He said the contractor also did not approach his office to make a formal request for more funding for the project.

Minns denied further funding would be available on Tuesday when asked whether the government would need to compromise if the CGU could not meet the “additional $1.5 billion needed to repair the tunnels”.

“No. This contractor … took the design risk and he took the construction risk,” he told reporters.

“I’m sorry it didn’t work but at the end of the day they have to make up for it; they’re a big international infrastructure company, they’ve signed a deal with the NSW government. I promise you if they come in under budget they’re not going to send us a check back so they’re going to have to step up.”

Asked by Nationals MLC Nichole General whether the government was “prepared to allow the project to collapse, effectively allowing a $3.1 billion project to become a white elephant”, the minister said he would not undermine legal arguments “by the comments made here to satisfy your scaremongering”.

The committee heard the NSW government has spent $5 million on legal fees related to the dispute so far.

CPB, CGU’s lead contractor, has been approached for a response.