Roe 8 contract not hard to break

2nd November 2016


Greens South Metropolitan MLC Lynn MacLaren has called on the ALP to commit to tearing up the contract for Roe 8 following the tabling of contracts in Parliament last month.

“Even though the tabled contract is partly redacted, it is clear from advice I have received from people who routinely deal with similar contracts, it is not a contract that would be especially punitive to break,” Ms MacLaren said. 

“Specifically, Clause 26 of the contract allows for ‘no fault’ termination with the price of doing so only being the costs incurred up to that point.

“This confirms the Government’s answers to my question in Parliament on 22 September when the Government said the cost of reneging on contracts would be solely, ‘the cost of work already completed’.

“Given the Government’s proposed timeline is to start work just before Christmas when the construction industry typically slows down then or stops altogether, the costs incurred by March are unlikely to be high, and given the level of community opposition, serious work might not have begun at all.   

“I note that the contract is an alliance style of contract, with a direct cost target and Main Roads as the owner-participant in the alliance, and an alliance board consisting of Main Roads representatives and representatives from the other companies in the consortium.

“The contract specifically excludes any loss of profit, loss of reputation liabilities for Main Roads in the event of termination, and consequential loss between the participants is also excluded, and furthermore there is a clause (4.1) that states that there can be no litigation or arbitration between the parties.

“With the tabling of this document, the ALP has genuinely ran out of excuses to fence-sit about what they would do about Roe 8 if they win Government.

“In contrast, the Greens position is clear-cut. Whoever is in Government next year we are determined to ensure this disastrous project does not proceed.”

Authorised by Lynn MacLaren © 2017

Hon Lynn MacLaren MLC - Member for South Metropolitan Region Legislative Council, Parliament of Western Australia