WA Labor frontbencher Fran Logan won't be sacked but has been "severely counselled" by his leader for threatening companies with legal action if they seek compensation for broken contracts.
The opposition has vowed to tear up contracts for the Roe 8 highway extension, which is under construction and is the most controversial part of the $1.9 billion, largely federally funded, Perth Freight Link project.
The Liberals sent media video on Thursday - two days before the election - of Mr Logan , the opposition local jobs spokesman, warning companies at a public forum in March last year they would have to spend several years in court if they wanted compensation for terminated contracts.
He also indicated they could miss out on future contracts.
"There's lots of other projects coming up and we will remember your name when you put your tender in if that's the game you want to play," Mr Logan said in the video.
Opposition Leader Mark McGowan rejected Premier Colin Barnett's call to rule out making Mr Logan a minister if he wins Saturday's state election.
"My colleague has made a mistake, he has been severely counselled," Mr McGowan told reporters on Friday.
"He accepts absolutely that what he said was wrong. What Fran said was not true and it will not come to pass."
Mr McGowan said the comments were made "in the heat of the moment ... in an election campaign", even though the official campaign only started last month.
"He said something inappropriate and wrong - that's the end of the matter," the Labor leader said.
Mr McGowan, who was visiting construction and engineering company Civmec at Henderson in Perth's south, insisted he was pro-business, reminding reporters he previously approved Chevron and Fortescue projects as a Labor minister.
Labor says the cost of tearing up the Roe 8 contracts will be modest, with Liberals estimating it will cost $40 million.
