Major building companies say they will pursue the NSW government for lost costs if it dumps the controversial Sydney CBD Metro project.

Up to $60 million had been spent on the project by the construction industry, Australian Constructors Association president Wal King said today.

There have been several reports the CBD Metro will be scrapped, and possibly replaced with a light rail system.

NSW Premier Kristina Keneally as recently as Monday declined to comment on the speculation about the CBD Metro’s future, saying details about the government’s metro network would be released with the transport blueprint later in February.

Ms Keneally last month said the government had stopped buying property in the Rozelle area, fanning speculation the CBD Metro, announced by former premier Nathan Rees, would be scrapped.