SKS Technologies has secured another $38 million of electrical infrastructure and fit-out work at Built’s MEL2 data centre in Melbourne, taking the project’s total value to $66 million. The award lifts SKS’s current work on hand to $270 million, although the announcement does not disclose margins or delivery timing.
- Additional $38 million MEL2 contract awarded by Built
- Total MEL2 project value reaches $66 million
- Current work on hand rises to $270 million
- Scope includes 22kV cabling, switchroom equipment and cold shell fit-out
- Contract timing, margins and cash flow contribution remain undisclosed
MEL2 Contract Reaches $66 Million
SKS Technologies Group Limited (ASX:SKS) has added $38 million of work to its Melbourne MEL2 data centre project, turning what began as a $28 million early works package into a $66 million contract. Built awarded the additional scope for the next stage of the project in Melbourne’s northwest.
The expansion gives SKS more than another contract win: it extends the company’s role on the same major data centre development. The earlier $28 million MEL2 early works package was announced in July and covered the project’s initial phase.
Electrical Infrastructure Moves Into Construction
The new work covers inground services and cold shell activities, including high- and low-voltage infrastructure, inground communications systems and 22kV cabling from the substation to Shell A. SKS will also install 22kV switchroom equipment and deliver lighting, power distribution, earthing and cable support systems inside the building.
The package extends into the client’s technical space, with SKS responsible for internal fit-out across offices, stores, amenities and communications rooms. Chief executive Matthew Jinks said the repeat award demonstrated confidence in SKS’s workmanship, reliability and ability to deliver complex electrical infrastructure to specification and on time. That is the company’s stated assessment; the release provides no independent performance measures or project margin details.
Work On Hand Rises To $270 Million
SKS said current work on hand now stands at $270 million. It also pointed to a growing tendered pipeline and returning clients as support for further expansion, but did not provide a revised earnings forecast, contract duration, expected revenue recognition schedule or cash flow outlook for the MEL2 award.
That missing detail matters because the full $66 million project value is not new work secured today: $28 million had already been announced as early works. The immediate development is the additional $38 million scope and the visibility it provides over another stage of a large data centre project, rather than a $66 million increase in SKS’s order book.
Bottom Line?
The contract strengthens SKS’s data centre workload, but the next useful disclosure will be how quickly the work converts into revenue and at what margin.
Questions in the middle?
- What margin profile will SKS achieve on the expanded MEL2 scope?
- Over what period will the additional $38 million be delivered and recognised as revenue?
- How much of the tendered pipeline can be converted into new awards after MEL2 progresses?