E31 Heavy and Civil Engineering Construction

Clough on the brink amid fresh contract blowouts

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Original article by Nick Evans, Perry Williams
The Australian – Page: 17 : 18-Oct-22

Murray & Roberts has advised the Johannesburg Stock Exchange that cost blowouts at the Waitsia gas project and a petrochemicals plant in Texas will reduce its profit for the six months to December. The company’s Australian subsidiary Clough is undertaking engineering work on the two projects, and Clough CEO Peter Bennett has advised staff that the contractor’s financial position has worsened since an update in early September. He also said Clough and its parent are looking at options for the company. Clough recently opened a data room for prospective buyers of the business, while sources have indicated that voluntary administration may also be an option.

CORPORATES
CLOUGH LIMITED, MURRAY AND ROBERTS HOLDINGS LIMITED, JOHANNESBURG STOCK EXCHANGE

Guilty Gregg confronts jail time

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 1 & 16 : 12-Dec-18

Leighton Holdings’ former CFO Peter Gregg will be sentenced on 31 January after being convicted on two counts of falsifying the construction firm’s accounts. Gregg had pleaded not guilty to the charges of breaching section 1307(1) of the Corporations Act. Each offence carries a maximum penalty of two years in jail or a fine of $11,000. The case centred on a steel supply deal with a United Arab Emirates-based company in 2011 which involved two payments worth a combined $US15m. Gregg was Leighton’s CFO until 2014; he resigned as CEO of Primary Health Care in early 2017 to contest the charges.

CORPORATES
LEIGHTON HOLDINGS LIMITED, ASIAN GLOBAL PROJECTS AND TRADING FZE, PRIMARY HEALTH CARE LIMITED – ASX PRY, CIMIC GROUP LIMITED – ASX CIM, LEIGHTON WELSPUN CONTRACTORS PRIVATE LIMITED, QANTAS AIRWAYS LIMITED – ASX QAN, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, DISTRICT COURT OF NEW SOUTH WALES

Construction work deals blowing out project costs

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Original article by John Slater
Herald Sun – Page: 34 : 16-Sep-16

Construction unions have too much influence on big infrastructure projects, demanding excessive wages for no gains in productivity. The Menzies Research Centre has calculated that inefficient work practices and excessive wages on union-controlled construction sites increase the cost of major infrastructure projects by 20 per cent to 30 per cent. The Wonthaggi desalination plant in Victoria is a good example of union power and its consequences.

CORPORATES
CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, THE MENZIES RESEARCH CENTRE LIMITED

FIRB clears China Communications acquisition of John Holland

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 20 : 9-Apr-15

Leighton Holdings’ sale of defence contractor John Holland to China Communications Construction Company has been cleared by the Foreign Investment Review Board. Federal Treasury Joe Hockey says the $A1bn deal does not raise any national interest concerns. John Holland is estimated to have undertaken some $A470m worth of construction contracts for the Department of Defence in 2014

CORPORATES
LEIGHTON HOLDINGS LIMITED – ASX LEI, JOHN HOLLAND PTY LTD, CHINA COMMUNICATIONS CONSTRUCTION GROUP LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF DEFENCE, THE STOCK EXCHANGE OF HONG KONG LIMITED, WORLD BANK, CHINA ROAD AND BRIDGE CORPORATION, AUSTRALIAN SECURITY INTELLIGENCE ORGANISATION

State’s letter guaranteed $1.2b

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Original article by Lucille Keen, Ben Potter
The Australian Financial Review – Page: 10 : 20-Mar-15

Victorian Treasurer Tim Pallas says the previous state government signed a letter that was prepared by the Lend Lease-led East West Connect consortium. The letter contains a guarantee to pay more than $A1.2 billion in compensation to the consortium if the project is cancelled. Pallas accused the previous government of being too close to business. The State Government is trying to avoid paying $A1.2 billion in compensation for cancelling the toll-road project

CORPORATES
VICTORIA. DEPT OF TREASURY AND FINANCE, EAST WEST CONNECT PTY LTD, VICTORIA. LINKING MELBOURNE AUTHORITY, LEND LEASE GROUP LIMITED – ASX LLC, CLAYTON UTZ, ECOMOUV SAS

ACCC bill faces Senate defeat

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Original article by Ewin Hannan
The Australian Financial Review – Page: 7 : 13-Mar-15

The Federal Government’s attempt to reinstate the Australian Building & Construction Commission is unlikely to be successful. The legislation proposed by the Government is likely to be defeated in the Senate. Crossbench senators Ricky Muir, Jacqui Lambie and John Madigan have vowed to vote against it

CORPORATES
AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, FAIR WORK BUILDING AND CONSTRUCTION, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, MASTER BUILDERS OF AUSTRALIA

Business fears a return to union chaos

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Original article by Ewin Hannan
The Australian Financial Review – Page: 3 : 4-Mar-15

Fair Work Building & Construction’s powers to take action over unlawful conduct by unions are slated to expire at the end of May 2015. The Australian Government faces resistance from the Opposition and the Australian Greens to extend these powers. Groups such as the Australian Industry Union and Master Builders Australia are concerned about the impact on the construction industry if the sunset clause introduced by the Australian Labor Party takes effect

CORPORATES
FAIR WORK BUILDING AND CONSTRUCTION, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, THE AUSTRALIAN INDUSTRY GROUP, MASTER BUILDERS AUSTRALIA INCORPORATED, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, AUSTRALIA. DEPT OF EMPLOYMENT, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, PALMER UNITED PARTY

Constructive tactics pay dividends

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 27 : 12-Feb-15

Australian construction group Leighton Holdings has posted a net profit of $A676.5m for the 2014 calendar year, which is 33 per cent higher than previously. The group expects its net profit for 2015 to be within the range of $A450m and $A520m. Shareholders will receive a final dividend of $A0.53 per share, plus a special dividend of $A0.15 following the sale of the John Holland business for $A1.1bn

CORPORATES
LEIGHTON HOLDINGS LIMITED – ASX LEI, JOHN HOLLAND PTY LTD, HOCHTIEF AG, GRUPO ACS, CHEVRON CORPORATION, AL HABTOOR LEIGHTON GROUP, CITIGROUP PTY LTD, FLEETCO

Telstra designs new deal for NBN

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Original article by Mitchell Bingemann
The Australian – Page: 17 : 19-Dec-14

Telstra recently renegotiated its deal with NBN Co, the entity rolling out the national broadband network. It will still be worth $A11.2bn but involve different technology, due to the September 2013 election win of the Australian Government. The telco will also benefit from a separate move by NBN Co to award it half or more of the design and planning contracts for the infrastructure project, and some construction work. Pending confirmation by Communications Minister Malcolm Turnbull and Finance Minister Mathias Cormann, the agreements may be signed on 19 December 2014

CORPORATES
TELSTRA CORPORATION LIMITED – ASX TLS, NBN CO LIMITED, AUSTRALIA. DEPT OF COMMUNICATIONS, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY

Labor plan on Link compo

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Original article by Josh Gordon, Mark Hawthorne
The Age – Page: 6 : 4-Dec-14

The companies contracted to build the East West Link may seek compensation if the new Victorian Government abandons the project. The Australian Labor Party warned before the election that it would stop the toll road. The consortium formed to build the East West Link includes Acciona Infrastructure, Lend Lease, Capella Capital and Bouygues Travaux Publics. The Government may offer them alternative contracts

CORPORATES
LEND LEASE GROUP LIMITED – ASX LLC, LEIGHTON HOLDINGS LIMITED – ASX LEI, BOUYGUES SA, CAPELLA CAPITAL PTY LTD, ACCIONA SA, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, VICTORIA. DEPT OF PREMIER AND CABINET, VICTORIA. DEPT OF TREASURY AND FINANCE