The construction and engineering firm in negotiations with the Australian government to take over running the Nauru immigration detention centre doesn't have any experience delivering welfare services.
Negotiations for a garrison and welfare services contract was close to being finalised with Canstruct, a Senate committee was told on Monday.
The company previously was involved in building detention centre facilities on Nauru as well as the local hospital, primary school, courthouse, jail and community centre.
Canstruct, the only firm to participate in a restricted tender process, will receive an upfront payment of $8 million.
Immigration department official David Nockles has concerns about its lack of specific welfare service experience.
The company had experience running mining camps and providing catering, cleaning, facility maintenance services, he said.
The majority of welfare services would be delivered by Australian charity Host International, under a contract with the Nauru government.
Canstruct's past contracts on Nauru for construction have totalled more than $650 million.
