ACT Government's Secret $3 Million Settlement Over Road Project Contractor
The ACT government has come under scrutiny after it was revealed that senior officials signed off on a confidential $3 million settlement with a contractor involved in a major road duplication project. This decision was made despite an independent adjudicator previously rejecting a much larger claim from the firm and determining that the contractor was actually owed less than $830,000.
Details of the Confidential Settlement
Documents obtained by The Canberra Times show that Infrastructure Canberra officials executed a secret settlement deed in January 2025. This agreement outlined a $3 million payment to Woden Contractors Pty Ltd, which was involved in a $22.8 million contract for work on the Gundaroo Drive duplication project. The contract was originally signed in 2022.
The Gundaroo Drive project involved upgrading a major arterial road, specifically the existing William Slim Drive between Baldwin Drive and Chuculba Crescent. This infrastructure upgrade was designed to improve traffic flow and connectivity in the region.
Adjudicator's Findings Contradict Settlement
Less than two months before the settlement was dated on January 17, 2025, an independent adjudicator had delivered a decision on December 6, 2024. The adjudicator determined that Woden Contractors was owed $827,829.70 from the ACT government following a complex contract dispute over the costs of completing the road works.
In the adjudication report, it was noted that Woden Contractors had claimed more than $7.5 million from the ACT government. However, after considering previous payments, the adjudicator found the firm was entitled to a progress payment of $827,829.70. The adjudicator concluded that Woden Contractors failed to provide sufficient documentation to justify the higher price claimed for altered work methods on the road works.
The adjudicator specifically found that these costs were not necessary and unavoidable expenses arising from instructions issued by the ACT government. Additionally, the adjudicator determined that Woden Contractors was not entitled to any payment for recasting concrete girders or altered work method costs.
Confidential Terms and Government Response
The confidential settlement deed revealed that the government agreed to settle Woden Contractors' claims, including those related to precast girders, without admitting liability. The deed stated: "Wodens has made claims under the contract ... Without admission of liability, the parties have agreed to settle those and other claims."
The agreement included confidentiality clauses requiring both the ACT government and Woden Contractors to keep its terms secret. Both parties also agreed not to sue each other over the contract or for any future claims relating to the project.
When questioned about the settlement, a government spokesman stated that the ACT does not comment on commercial-in-confidence agreements to protect the commercial interests of the parties involved. The spokesman explained: "Claims in construction or civil contracts often arise and some are disputed. An adjudication under the Building and Construction (Security of Payments) Act is an assessment of an entitlement to an interim payment through a rapid dispute resolution method but it is not a final determination of rights under the contract."
Infrastructure Canberra declined to answer detailed questions about the settlement deed, including whether the payment was actually made and how many similar agreements had been reached with Woden Contractors. The agency also refused to disclose how many settlements it had reached with contractors over the past five years.
Contractor's Perspective and Project Challenges
On its website, Woden Contractors described the Gundaroo Drive project as "technically challenging" and noted that it involved building a new bridge over Ginninderra Creek and adding traffic lights to an intersection. The firm stated that the project, completed in May 2025, was undertaken under difficult circumstances including extensive wet weather, cost escalations, supply issues related to the Ukraine War, and extensive asbestos onsite.
The three-stage $60.1 million Gundaroo Drive duplication project was jointly funded by the Commonwealth and ACT governments. Work began in January 2021 and was completed in May 2025, with the project duplicating the road between Ginninderra Drive and the Barton Highway while adding new bridges and on-road cycle paths.
The revelation of this secret settlement raises questions about government transparency and the handling of contractor disputes in major infrastructure projects. With the settlement amount being substantially higher than what the independent adjudicator determined was owed, concerns have been raised about the decision-making process within the ACT government and its agencies.
