On 30 September 2011 the Supreme Court of Victoria in
the decision of SMEC Australia Pty Ltd v McConnell Dowell
Constructors (Aust) Pty Ltd (No2) [2011] VSC 492 struck out a
$26 million claim for variations, extra work, delay costs and
misrepresentations by the design team on the Adelaide Desalination
Plant Project. While the claim may be redrawn, this is an
extraordinary step. It highlights the need for complex claims to be
well considered and particularised before proceeding to litigation.
With the prospect of litigation between SA Water and AdelaideAqua
looming, the future of this project will be one to watch with
interest.
ADELAIDE DESALINATION PLANT PROJECT
On 16 February 2009 SA Water entered into a DBOM contract with
the 'AdelaideAqua' consortium (consisting of McConnell
Dowell Constructors (Aust) Pty Ltd, Abigroup Contractors Pty Ltd,
Acciona Aqua Australia Pty Ltd) and Trility Pty Ltd (formerly
United Utilities)) for the design, construction and