NQ Water will recommission the Magnetic Island Pipeline Replacement Project with Townsville based engineering company, Pacific Marine Group (PMG).

The contract was awarded after the previous contractor was unable fulfil requirements under the original tender and sought significant additional funds to finish the project.  

Chairman Ian Hamilton says NQ Water resolved to recall tenders due mainly to the size of the variations.

"We have a statutory obligation to ensure the wider community receives the best value from our activities," Mr Hamilton says.

"The amount of variations registered by the previous contractor meant we were obliged to go back and test the marketplace.

"The resulting difference between the previous tender plus variations and the new tender are minimal. This shows that the winning bid is a more accurate reflection of the technical and mechanical demands of the work.

"Process is as important to us as price and we are confident that PMG has the resources and technical capacity to complete this infrastructure that is critical for the Magnetic Island community."

PMG has significant experience delivering services nationally and internationally and won the tender on its ability to comply with the environmental and engineering requirements of the contract, says Mr Hamilton.

"PMG is investing in technology that is the world standard in this type of work," says Mr Hamilton.

"The machinery, called a 'Stinger', is attached to a barge and digs a trench assisted by compressed air as it lays the pipe, all the while mitigating environmental disruption. This technology proved to be the difference."

Mr Hamilton says the Stinger will be built in the next three months with the project expected to be completed by February next year.

"NQ Water recognises that residents of Pallarenda have the compound on their doorstep. We regret any inconvenience and thank them for their continued patience."