AJ LUCAS Group must pay the Gladstone Area Water Board and Gladstone Regional Council (GAWB/GRC) $4.2 million following a decision of an expert panel.
GAWB/GRC and AJ Lucas terminated a contract for the construction of water and sewerage infrastructure between Gladstone and Curtis Island in 2012.
The payment will be in addition to another $1.8 million AJ Lucas previously paid to the Queensland Supreme Court as a cash security.
AJ Lucas chairman Phil Arnall said that while the company was disappointed, it was pleased to draw a line under the matter.
“The circumstances that gave rise to this dispute led to the implementation of new procedures that seek to ensure that our business would not be susceptible to similar occurrences in the future,” he said.
“The trajectory to stronger profitability we have been on in recent years is in part due to these better controls.”
AJ Lucas is currently conducting a $21.1 million entitlement offer.