A subcontractor hired by Webuild for the Western Sydney Airport Metro project has been removed following an investigation into the subcontracting chain, which identified suspicions of underpayment of workers, lack of adequate insurance, and tax fraud.
The Western Sydney Airport Metro project aims to provide a metro link to the new airport in western Sydney and is part of the major infrastructure program of the state of New South Wales in Australia. The public-private partnership contract for stations, systems, trains, operation, and maintenance was awarded in December 2022 to the Parklife Metro consortium.
Sydney Metro commissioned the investigation in September 2025, following media reports regarding possible criminal activities and labor law violations at the project site.
Subcontractor Removed from the Project
The investigation, conducted by Max Kimber SC, focused on the company Future Form Civil Pty Ltd and several subcontractors further down the contractual chain. Future Form had been engaged since July 2024 by Webuild under four subcontracts for formwork, reinforcement, concrete pouring, and the supply of construction workers.
According to the investigation’s findings, Future Form then used workers supplied by other subcontractors without obtaining the necessary approvals and without declaring them as required by the contract.
Due to the complex contractual chain, the investigator concluded that Future Form could not accurately track who was on the construction site, what work they were performing, and how much they were being paid. The report also notes the inability to verify basic details on invoices totaling over USD 10 million (approximately EUR 6 million).
Suspicions of under-the-table payments and tax fraud
The report mentions the case of a worker who was allegedly asked to come to the construction site to be paid cash, before the money was transferred to his account by an unknown subcontractor. Evidence in the form of messages shows that he was allegedly instructed to claim he was working directly for Future Form, not for the unnamed subcontractor.
Another message cited in the report claims that “some workers receive social benefits and work for cash.”
The investigation also identified labor supply companies established just days apart, at the same residential address, with the same director and secretary. These firms allegedly sent invoices and supporting documents to Future Form via the Signal app, where messages can be set to self-destruct.
The report also flags potential insurance fraud involving at least one contractor, due to significant discrepancies between notifications to iCare, New South Wales’ workers’ compensation scheme, and payroll records.
The case is being referred to the police and anti-corruption agencies
Several key individuals within the subcontracting organizations refused to cooperate with the investigation, according to the report. For this reason, the findings have been forwarded to institutions with enforcement powers, including the ability to request documents and interview witnesses.
Following the findings, Parklife Metro, the operating company for the Western Sydney Airport Metro project, removed Future Form and all its subcontractors from the project.
Government calls for stricter subcontracting rules
New South Wales Transport Minister John Graham issued a ministerial directive to the independent board of Sydney Metro. The directive requires that any future subcontracting be carried out in strict compliance with the rules before any financial claims related to the project are settled.
“We will not tolerate any irregularities on our construction sites, including on a project as important and generational as Sydney Metro – Western Sydney Airport,” said John Graham.
He said the results of the investigation would be made available to institutions capable of fully investigating the case.
“The Liberals were convinced that public-private partnerships were the best model for projects like this, but we are concerned that this model has privatized the profit, socialized the risk, and kept integrity checks as private as possible. I have issued a ministerial directive that makes it clear to Sydney Metro executives that the New South Wales Government expects this issue to be resolved,” the minister said.
USD 130 Billion Infrastructure Program
New South Wales Treasurer Daniel Mookhey stated that the public has the right to demand compliance with the law on all publicly funded projects, whether it involves prime contractors or subcontractors.
“The public is right to demand that anyone working on a taxpayer-funded project, large or small, always follow the law and the rules. Whether they are a main contractor or a subcontractor,” said Daniel Mookhey.
He added that the government will take action whenever suspicions arise within the state’s USD 130 billion infrastructure program.
The case brings back into focus the risks of complex subcontracting chains on major transportation projects, where responsibility for workers, wages, insurance, and compliance can become difficult to track when multiple intermediary firms are involved in the execution.
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