Digging on Melbourne's $11 billion Metro Tunnel rail project has resumed after a spat between the builder and state government over deadlines and cost blowouts.
Boring machines will be back at work by Thursday night, following mediation between the government and the Cross Yarra Partnership consortium, which threatened to quit unless the state agreed to pay for price hikes.
Treasurer Tim Pallas, however, has denied making a deal with the consortium to resume work.
"Quite frankly, we have a contract and we expect that contract to be honoured," he told reporters.
It comes after Premier Daniel Andrews threatened to take CYP - which includes companies John Holland, LendLease, Bouygues Construction and Capella Capital - to court to enforce the contract they signed to deliver the tunnel on budget by 2025.
"This is a pretty obvious tactic from some giant building companies who are very keen to get some more money out of Victorian taxpayers," Mr Andrews said on Tuesday.
Mr Andrews also warned the consortium their behaviour on this deal would be taken into account for tenders on the $16.5 billion North East Link toll road.
Australian Associated Press
