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Dispute with Reed Construction 'resolved': NSW govt
23/05/2012 - The NSW government says it has resolved a dispute with Reed Construction over millions of dollars it was said to owe the company for state projects.
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It's now calling on the builder to pay subcontractors and get back to work.
Reed had claimed Roads and Maritime Services (RMS) and the Department of Education and Communities (DEC) owed the company money for building variations, reportedly leaving about 1500 subcontractors between $60 million and $80 million out of pocket.
The government disputed the claim and appointed lawyer and former judge Andrew Rodgers QC to review the company's allegations.
The disagreement halted roadworks on four major projects, including upgrades to the Great Western Highway and Central Coast Highway.
NSW Finance Minister Greg Pearce on Tuesday declared, "This saga is essentially resolved".
"I'm now advised that it is unlikely that any sums owed on the variation claims will be anywhere near the sums claimed in the media," Pearce told parliament on Tuesday.
"This government has worked tirelessly with Reed to ensure a fair outcome.
"For instance, I understand that RMS for several months paid all of its payments to Reed ahead of contract terms to support Reed's cash flow, which should have helped it to meet its commitment to subcontractors.
"Now the determination has been made, the ball is back in Reed's court, to pay their subcontractors, to pay their creditors, and to get back on with the jobs of completing the projects they were contracted to do."
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