Transport for NSW is taking formal action over what is says is the sustained failure of the contractor to resume work on Sydney’s M6 project.
It has issued a notice of default to the M6 delivery contractor CGU.
Chief executive officer NSW Motorways Camilla Drover said Transport had engaged extensively with CGU to work through technical issues and explore options to restart the final 10% of tunnelling.
“For more than two years, Transport has worked carefully, constructively and in good faith to try to resolve the issues affecting this project,” she said.
“We are extremely disappointed the project has not progressed, and our concerns have been made clear to the private consortium that signed on to design and construct the M6.”
Drover said the decision to issue a notice of default to CGU was a serious step made only after extensive efforts to resolve the matter, but that it was in the public interest to limit further delay, uncertainty, and risk.
The notice requires the contractor to return to site and resume substantive work, including tunnelling, in accordance with its current contractual obligations.
Transport requires CGU to do so on, or before, May 1, 2026. If this does not occur, Transport may consider further legal steps.
M6 Stage 1 is a major road project that will connect the M8 Motorway to Sydney’s southern suburbs.
CGU, a joint venture comprising CPB, Ghella and UGL, was awarded a design-and-construct contract worth just over A$2.5bn by the former government in May 2021. Construction began in February 2022 and was paused following two subsidence events in March 2024. Since August 2024, tunnelling has not progressed after underground works ceased.
In May last year, CGU walked off the job. At the time, a Transport spokesperson confirmed to T&TI that 90% – around 9km – of tunnelling had been completed.
Transport says it considers an engineering solution has been found to safely recommence tunnelling and has repeatedly communicated this to CGU. However, work has not resumed.
Transport is also considering contingency arrangements, including care and maintenance options, should they be required.
