Company collapse leaves Kialla business out of pocket

By Jay Bryce

Aug 23, 2023

Left waiting: A Shepparton business thought it was going to play a role in upgrading regional rail lines but instead has been left unpaid for its work. Photo by Geoff Adams

A Greater Shepparton business is owed tens of thousands of dollars for work on a state project after another company’s collapse has thrown it and regional businesses across Victoria into the lurch.

Synergy Traffic Management, located in Kialla, was a subcontractor on Victoria’s Big Build project, specifically the North-East Line Upgrade.

Hold tight - we’re checking permissions before loading more content

Last month Exel Infragroup (the lead contractor on the project) went into liquidation.

The abrupt collapse has left subcontractors all over the state unpaid for their work.

State Member for Northern Victoria Wendy Lovell is urging Transport Infrastructure Minister Jacinta Allan and the state government to make Synergy, and every other subcontractor, whole.

“The liquidation of civil excavation company Exel Infragroup is impacting several subcontractors involved in the Andrews Labor Government’s North-East Line project, including Synergy Traffic Management of Shepparton,” she said.

“Synergy Traffic Management alone is owed $63,000.

“These sub-contractors are small businesses already doing it tough in the current economic climate, and the fact that they remain unpaid for work completed on a state government project is unacceptable.”

A government spokesperson revealed that Exel Infragroup had already been paid by VicTrack to deliver the North East Line Upgrade.

“Exel Infragroup is responsible for managing its subcontractors,” the spokesperson said.

“VicTrack appointed Exel Infragroup to deliver the works following a competitive tendering process, in line with the Victorian Government Purchasing Board guidelines.”

VicTrack delivered the level crossing upgrades at Lilliput and Balmattum as part of the North East Line Upgrade, on behalf of Rail Projects Victoria.

The government said that when reviewing offers from the market to provide goods or services, government agencies were required to do their due diligence, which included considering the VGPB guidelines and the ministerial guidelines on public construction.

VicTrack, a state government agency, owns all railway and tram lines in Victoria.

Exel Infragroup directly engaged its subcontractors to deliver the works, according to the government, on Exel Infragroup’s terms of engagement and under its management and control.

The government said as part of the liquidation process, subcontractors may be able to lodge proof of debt with the liquidators to seek recovery of some of the debt that may be owed to them.