BGC, Laing O'Rourke lock in NorthLink contract

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12-Jan-2017 | Business News

A joint venture between BGC Contracting and Laing O'Rourke has been confirmed as the successful bidder for a $417 million contract to deliver the second stage of the NorthLink WA roads project.

The Great Northern Connect joint venture will cover construction of the central section of the Swan Valley Bypass between Reid Highway and Ellenbrook, with the scope of work including the design and construction of about 20 kilometres of highway, 14 road bridges and three footbridges.

Laing O'Rourke Australia hub managing director Cathal O'Rourke said he was delighted to put pen to paper, marking the formal awarding of the contract.

“We are extremely pleased to be playing a major role on another significant project for Western Australia,” Mr O'Rourke said.

“This project builds on our growing portfolio of national road infrastructure projects and marks an important stage in our growth as a delivery partner of choice in the sector.”

BGC Contracting CEO Greg Heylen said it was particularly pleasing to be building on an existing strong relationship with Laing O'Rourke to deliver such a vital infrastructure project for the state.

“It is encouraging that our proven capabilities and capacity in construction and project management have been recognised in this contract win, and I am confident we are in a sound position to secure similar major infrastructure contracts in the future,” Mr Heylen said.

“As opportunities in the mining sector have declined in recent years, BGC Contracting has refocused its energies on the diversification of the business with a strong emphasis in the public infrastructure sector and this latest success is a satisfying endorsement of this strategy.”

Transport Minister Bill Marmion said work would start with the 17­kilometre link between Benara and Maralla roads, then Reid Highway between Malaga Drive and Altone Road.

“Construction is well under way on stage 1 of the NorthLink WA project with Tonkin Highway grade separations scheduled for completion by early 2018,” he said.

Work on stage 2 is expected to begin mid­year and be completed by mid­2019.

John Holland was awarded a $176 million construction contract for stage 1 of the $1.2 billion project in January last year.

The first stage covers work from Guilford Road to Reid Highway, including flyovers at the intersections of Collier Road, Morley Drive and Benara Road, and upgrading a section of Tonkin Highway north of Guildford Road to turn it into a six­lane freeway.

The third stage of the project, which does not yet have a contractor assigned to, will connect Ellenbrook to Muchea.

The federal government is providing $894 million for the project, with the state government contributing $223 million.