Italian building company Webuild has reached an agreement to buy embattled WA construction firm Clough's Australian business, after it entered administration last week.
Administrators from Deloitte reached a deal with Webuild on Tuesday.
The Italian company is set to acquire assets relating to the Clough's Australian business, as well as key projects like the Snowy Hydro 2.0 and Inland Rail contracts.
The administrators will now enter a period of negotiation with Webuild to finalise an agreement before a deadline of December 21.
Webuild had been involved in negotiations to acquire Clough Group before the WA-founded firm — which built Perth's Narrows Bridge in the 1950s — entered administration on December 5.
Administrator Jason Tracy described the agreement as a "significant development".
"In the last week, we have developed productive relationships with project principals and partners, and now have interim and ongoing funding agreements in place across 95 per cent of projects by value," Mr Tracy said.
"This provides stability for those projects, clients and joint venture partners, employees, sub-contractors and other stakeholders."
Mr Tracy also said the agreement would help to minimise Clough's liabilities.
Another administrator, Sal Algeri, said Webuild were an "obvious suitor" for Clough.
"The next eight days will be important for all parties as we pursue a successful outcome, and added certainty for all involved," he said.
Webuild is a leading builder of rail projects, bridges, roads and ports, as well as dams and power plants.
The company recently completed work on Perth's Forrestfield-Airport rail link.
