Reed ditched from road upgrades

NSW terminates deals for four projects, with delays expected as talks get underway with other contractors

May 29, 2012

Several NSW road upgrades face indeterminate delays after the State Government ended contracts with troubled firm Reed Constructions.

Roads and Maritime Services (RMS) will now start negotiations with a number of contractors, Roads Minister Duncan Gay says.

Work has stopped on the Great Western Highway upgrade from Woodford to Hazelbrook, the Central Coast Highway upgrade from Carlton to Serpentine roads, the Newcastle Inner City Bypass from Shortland to Sandgate and the Alfords Point Bridge northern approaches.

"It was decided by RMS to terminate Reed’s services and ensure the priority was for the important road projects to be completed as soon as possible," Gay says.

The NSW Government has been working with Reed Constructions since it indicated in late February it was experiencing financial difficulties.

"It is not appropriate for the Government to use taxpayers’ money to simply ‘bail out’ a company experiencing financial difficulties," Gay says.

Opposition leader John Robertson claims the move will delay the upgrades, reportedly worth about $200 million, by up to 12 months.

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