NBN Co, Silcar deny pulling plug on deals

NBN Co and Silcar have denied a report that the construction company will not tender for future construction contracts with NBN Co due to delays with existing construction contracts for the National Broadband Network (NBN).

The Australian Financial Review reported this morning that executives within Silcar and Transfield — which have previously won construction contracts — would not make any more offers for work for the roll-out of the Federal Government's NBN. This was reportedly due to the roll-out being slower than expected, which has "slashed their profits while preventing work crews from being assigned to other jobs".

The report stated that Silcar and Transfield were unable to comment on the story, due to contractual obligations. This afternoon, Silcar issued a statement denying the claim.

"The report in the Financial Review that Silcar is 'set to abandon' the next round of NBN contracts is untrue," the company's CEO Peter Lamell said. "Silcar has and will tender for specific components of the NBN offered to it, and remains 100 per cent committed to the nation-building project both for the work we have in hand and for additional work in the future."

NBN Co said it has confirmed with both Silcar and Transfield that they would continue to seek work from NBN Co.

"The report is patently untrue, as both Silcar and Transfield have confirmed independently today," NBN Co said. "All existing construction contractors are committed to the project, and are keen to bid for additional work."