Service Stream scores five-year NBN contract

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Service Stream scores five-year NBN contract

Projects cover MTM build in Victoria.

Service Stream has picked up a five-year contract worth up to $10 million to undertake various planning and construction projects for the multi-technology mix NBN.

The multi-technology integrated master agreement (MIMA) covers works related to the rollout of the NBN’s fixed-line networks.

The projects will begin in Victoria during December. The deal includes the potential to win additional contracts if key performance, quality, speed, and safety targets are met.

“This MIMA provides an opportunity for our business to grow our program of works with NBN, and to increase work volumes across subsequent years,” Service Stream managing director Leigh Mackender said in a statement.

The latest deal comes on top of the $70 million greenfields fibre rollout and $140 million field services delivery contracts Service Stream won last year.

The announcement continues a long relationship between the NBN and Service Stream.

Service Stream was among the first seven companies awarded contracts at the NBN’s first release sites in May 2010, and became a sub-contractor to Fujitsu in its greenfields rollouts soon after.

It also formed a joint venture with Lend Lease called Syntheo, which won a share of $300 million worth of NBN rollout contracts in Western Australia and Victoria, alongside Transfield Services.

When the NBN cut ties with Fujitsu for rollouts to greenfield premises, following concerns about connection delays, Service Stream split $183 million worth of contracts with Visionstream.

Just a few months later, Service Stream was awarded a two-year deal worth an estimated $64 million for fibre maintenance work across Victoria, Western Australia, the Northern Territory and South Australia.

In February 2013, NBN Co blamed the Sytheo joint venture for a significant shortfall in the number of houses passed by the NBN.

A month later, Sytheo announced it would hand back the remainder of its NBN rollout activities in the Northern Territory following a series of delays.

The news led to a two-week trading halt for Service Stream, which ended up stretching out for two months, as the company assessed losses stemming from the joint venture.

Sytheo eventually walked away from its remaining contracts, and Service Stream revealed it had lost millions of dollars as a result of the partnership.

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