The early contractor involvement is for the design of the village and the procurement of long lead items, which includes dongas, electrical switchboards, water pump stations and tanks.

Decmil had commenced design work and was in the process of securing the various long lead items required for the village including accommodation units and kitchens.

Decmil managing director Scott Criddle said the contract strengthened its relationship with BHP Billiton.

“Decmil has carried out a number of projects for BHP Billiton in the Pilbara region over recent years, including the Port Haven village we completed in 2010,” Criddle said.

The design and construction of Warrawandu village, located 25km east of Newman, was awarded to Decmil by BHP in 2011 and was expected to be completed later this year.

“The group remains in a very strong position, and we are continuing to see increasing demand from the resources sector as major projects take shape,” Criddle said.

Earlier this year, Decmil collected a contract and variations to two contracts to the total value of $137 million with Fortescue Metals Group to construct rail support infrastructure and a fly camp near its operations in the Pilbara.

The contractor also extended its reach to the Queensland accommodation market, recently winning a $90 million contract with BHP Billiton Mitsubishi Alliance to build and install infrastructure and accommodation facilities for workers at BHP’s Caval Ridge mine project in the Bowen Basin.

Decmil posted a $13 million profit for the first half of the 2012 financial year, down 7.9% period-on-period but remained on track to meet its revenue target for the financial year.

Following the news, shares in Decmil jumped 2.75% or 7c to $2.62 in morning trade.

This article first appeared in ILN's sister publication MiningNews.net.