The company contracted to complete 10 bridges for Western Australia’s $1.12 billion NorthLink WA project is reportedly in financial trouble, with the Stage Two contract being terminated yesterday.
It is anticipated that Omega, who were subcontracted to the project by the Great Northern Connect JV, will enter into administration.
Omega were two thirds of the way through their $3 million bridge contract when it notified Great Northern Connect JV (BGC Contracting and Laing O’Rourke) of severe financial difficulties.
The NorthLink WA project aims to build an advanced transport link between Morley and Muchea, which will considerably mitigate congestion and travel time.
According to an article by Perth Now’s Helen Shield, “Omega director Ivan Ivandich said he could not sign a statutory declaration that he would make 100 per cent payments to his subcontractors for their September payments. As a result, the joint venture had not paid Omega.”
Omega director Ivan Ivandich has said that “the September invoice (to joint venture Great Northern Connect) has not been paid.”
“We have got someone in to help us work this through and we will have a better idea of what’s going on next week.”
More to come.