Engineering group lodges legal action over WICET

ENGINEERING group Monadelphous is taking legal action over a dispute with the owners of the Wiggins Island Coal Export Terminal in Gladstone.

The group says it has not been paid property for work at the terminal, and it has accused the project owners of unfairly taking almost $20 million.

Monadelphous says it will launch legal action against the owners of WICET over the "unwarranted and unusual" withdrawal of $19.46 million in bank guarantees provided by the engineering firm and its partners.

"Having taken advice, Monadelphous intends to promptly initiate legal proceedings to recover monies called by WICET, and seek appropriate damages," Monadelphous said in a statement to the ASX on Thursday.

Monadelphous has been involved in the construction of the terminal since 2012, tasked with constructing the approach jetty, ship berth and shiploader.

It has lodged claims with the project owners and Queensland's Building and Construction Industry Payment Agency for additional payment.

It says the payment claim relates to changes in the scope and nature of the work it was required to carry out.

The statement said WICET had provided the group with notice that it intended to obtain the payment of monies WICET
alleged it is owed, based on a number of backcharges and deductions lodged with the group.

Monadelphous did not consider WICET's backcharges and deductions to be valid. 



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