Project Overview

TAG Advisory was engaged by Main Roads Western Australia (Main Roads) to assist in the resolution of complex claims submitted by the contractor on the Northam - Pithara Road regional upgrade project, focusing on quantum assessment and commercial dispute resolution. Additionally, the State Solicitor's Office separately engaged TAG Advisory as an Expert Witness for an Adjudication claim brought by the contractor under Western Australia's Security of Payment Act. This dual engagement demonstrated TAG Advisory's recognised expertise in both commercial claims management and formal dispute resolution processes.

Key Challenges

The project encountered significant commercial complexity with the contractor submitting multiple intricate claims culminating in formal Adjudication proceedings under the Security of Payment Act. The claims required detailed forensic analysis of quantum matters, including assessment of varied ground conditions, productivity impacts and regional delivery cost escalations that had affected the project.

Regional project delivery in the Northam - Pithara corridor presented unique challenges including weather delays, material supply constraints and resource availability issues that complicated claim assessment. Distinguishing legitimate cost impacts from contractor risk items required sophisticated analysis of contractual entitlements and industry benchmarks for regional road construction.

The escalation to formal Adjudication proceedings added legal complexity, requiring expert witness preparation and detailed substantiation of quantum assessments that would withstand legal scrutiny.

Methodology and Approach

TAG Advisory implemented a two-stream approach addressing both the commercial claims resolution and formal Adjudication proceedings. For Main Roads Western Australia, comprehensive review of contractor claims focused on quantum verification through:

• Assessment of claimed rates against contract provisions and market benchmarks
• Detailed analysis of cost substantiation and supporting documentation
• Evaluation of productivity impacts and measured mile analysis
• Review of variation entitlements and scope changes
• Verification of actual costs incurred versus claimed amounts

As Expert Witness for the State Solicitor's Office, TAG Advisory prepared comprehensive expert reports addressing the Security of Payment Act claim, including:

• Analysis of contractual entitlements and payment provisions
• Detailed quantum verification of claimed amounts
• Independent assessment of payment claim validity
• Preparation of expert witness statements
• Support for legal team in Adjudication response preparation

The dual role required careful management of professional obligations whilst maintaining independence and objectivity in expert witness capacity.

Outcomes and Value

TAG Advisory's comprehensive approach facilitated successful resolution of the complex commercial disputes before Adjudication determination was required. The parties successfully negotiated settlement based on the detailed quantum analysis and expert assessments provided, avoiding the cost and relationship impacts of formal determination.

Expert witness preparation strengthened the State's position in negotiations, with detailed quantum analysis providing factual foundations for commercial discussions. The structured approach to claims assessment enabled Main Roads to distinguish legitimate entitlements from ambit claims, achieving fair commercial outcomes whilst protecting public value.
Successful pre-determination resolution preserved commercial relationships and enabled project completion without the disruption of prolonged formal disputes. The avoided Adjudication determination saved significant legal costs and management time for all parties.

Conclusion

The Northam - Pithara Road engagement showcased TAG Advisory's dual capability in commercial claims management and formal dispute resolution support. By providing robust quantum assessment for Main Roads and expert witness services for the State Solicitor's Office, TAG Advisory facilitated successful resolution of complex disputes without requiring formal determination. This engagement reinforces TAG Advisory's position as trusted advisors for both commercial negotiations and formal dispute proceedings in regional infrastructure projects.