Transfield extends AU$300m NBN Victorian construction contract

Key National Broadband Network (NBN) construction contractor Transfield Services has been awarded a two-year extension on the contract it secured in 2011 to build the fibre optic network in Victoria.

The company will continue to design and construct the fibre optic network in Victoria, and also secured a two-year AU$66 million contract for build drops, which will see the company deploy fibre right up to a connection box on the side of every premises, regardless of whether that premises has ordered a service on the NBN.

NBN Co has previously said that this method is more cost effective than going back to premises missed after an area has been completed.

The company had said at the time that the total value of the contract would be AU$395 million if it ran the extra two years; however, today Transfield has indicated that the two-year extension on the original AU$133 million contract is worth up to AU$300 million itself.

NBN Co said the value of the contracts is still in line with the corporate plan.

Transfield also has contracts to build the network in metropolitan Sydney and south-east Sydney, and for maintenance services for the NBN.

Transfield is broadly believed to be one of the construction companies meeting NBN Co's construction targets. In March, Lend Lease and Service Stream joint venture Syntheo was forced to hand back its construction contract for the Northern Territory amid delays in building the network in the Northern Territory, South Australia, and Western Australia.

Service Stream has been in a trading halt since last Tuesday until at least Monday next week while the company conducts a review of the Syntheo telecommunications business.