The NSW Government and Transport for NSW have reached an agreement with the M6 Stage 1 consortium, CGU, for it to recommence work and deliver this important project for local communities.
The consortium CGU (CPB/Ghella/UGL) was awarded a Design and Construct contract by the former Liberal-National Government in May 2021 and construction commenced in February 2022.
Following two subsidence events in March 2024, tunnelling works ceased in that area, and all significant underground works ceased on the project in early 2025.
Transport for NSW has been negotiating with the consortium in good faith for more than two years to get this project back on track and protect the interests of NSW taxpayers.
An agreement has now been reached with CGU, and under this agreement, they will immediately resume all activities required to complete the project, under the terms of the original Design and Construct contract.
Importantly, this agreement is at no extra cost to NSW taxpayers.
The agreement also means Transport and CGU have reached a consensus that there are viable technical solutions to complete the remainder of the project.
Around 90 per cent of tunnelling and close to half of the tunnel fit-out has been completed for M6 Stage 1. Only 250 metres of excavation of the main tunnel remains.
Under the agreement, CGU has also agreed not to pursue contractual claims against Transport or the NSW Government for costs related to the two subsidence events in 2024, and will work to rectify this area.
Transport will provide an update on the expected completion timeline in due course. The contractors have agreed to seek to optimise this delivery further as they remobilise to site over coming weeks.
Minister for Roads Jenny Aitchison said:
“We have secured an agreement that gets the M6 Stage 1 project moving again and delivers the best value for NSW taxpayers.
“This agreement means construction will resume immediately under the original contract. This agreement is at no additional cost to the NSW Government – protecting taxpayers just like we promised.
“Our priority has always been to complete this project under the existing contract.
“With 90 per cent of tunnelling already complete, we now have a clear path to finishing the job.
“The former government entered into this contract, and when push came to shove, NSW taxpayers were left in the lurch. Unlike the Liberals, we will not hand out blank cheques when contractors try to take NSW taxpayers for a ride.
“We’ve spent every day since coming into government working to secure the best deal for taxpayers.
“That’s exactly what this agreement provides.”
Transport for NSW Secretary Josh Murray said:
“Transport for NSW has negotiated fairly and in good faith with CGU to achieve the result we are announcing today.
“CGU will now work to rectify the subsidence issues that originally paused the contract.
“While there has been a regrettable delay, the contract for the M6 Stage 1 has clear dispute resolution processes and these will be used – ending the threat of walk-offs and the need for termination – with a deed putting the interests of taxpayers, motorists and residents first.”
NSW Motorways CEO Camilla Drover said:
“We have always pursued the best interests of the NSW taxpayer and this agreement reflects that.
“We welcome CGU’s decision to resume delivery of the project as per the terms of the contract.
“CGU will resume work on the project immediately and we will provide an updated timeline for expected completion once we have it.
‘We now turn our attention to building a collaborative relationship with our contractor to complete the project.”
