Advertisement

Matera sues Leighton over quay

Phil Matera at Elizabeth Quay.

Like most days during his AFL career, Phil Matera feels he has been thrust into a "David versus Goliath" duel, only this time it threatens bankruptcy.

The former West Coast star is suing Leighton Contractors, the construction arm of Australia's biggest contracting company, for at least $4.7 million because of a deal that went sour over the Elizabeth Quay project.

Mr Matera claims his business had direct losses of $3.58 million, mainly because the contractor did not agree he should be paid extra to replace "unsuitable soil" with landfill outside their contract.

"I haven't been able to sleep and I've got my house on the market," Mr Matera said. "It's a nightmare."

He said he tried unsuccessfully to reach an out-of-court agreement with Leighton.

"We did the work, we think we're entitled to be paid for it," he said. "Big business shouldn't be treating small business like this."

A Supreme Court writ filed last week claims Leighton failed to pay Mr Matera's construction company Riverline Enterprises more than $4.1 million allegedly due under the contract up until last August.

It also claims nearly $600,000 for an outstanding retention balance and alleges a breach of a subcontract by Leighton Contractors which caused loss.

As well as the $4.69 million, the writ seeks damages, interest and costs.

Mr Matera said he felt galled that Leighton featured him and his business heavily in its 2013 "Cultivate" program, instituted to give WA indigenous businesses supply chain opportunities in the infrastructure and resources sectors.

He believed the company would help guide him through the Elizabeth Quay project and help him grow his business, but instead he was embarrassed at not being able to pay his company's subcontractors.

"Leighton is such a big company and we're only a small speck in the earth really," he said. "The reality is that in a few days … I will be forced to go into administration and probably shut my business."

Mr Matera said there had been several changes to the original contract as work progressed, but stressed his initial tender did not include any costings for the soil removal and replacement.

Mr Matera asked Premier Colin Barnett to intervene in the dispute.

In his reply, Mr Barnett wrote that such intervention would be inappropriate because the Metropolitan Redevelopment Authority had been told by Leighton-Broad that no further financial entitlement outside the contractual arrangements would be considered.

Leighton Contractors, which reported a $551 million profit and recorded revenue of more than $12.4 billion in 2014, declined to comment.