SA Formwork suing Barbaro Builders for work on Emperor Living development in Mawson Lakes

The builder of a $30 million apartment development in Adelaide’s north is being sued by a subcontractor for more than $1.2 million.

The builder of a $30 million apartment building in Adelaide’s north, under investigation for potential licence breaches, has been hit with a $1.262 million legal claim.

SA Formwork is suing Barbaro Builders in the District Court seeking payment of $1.168m in material hire fees and $94,200 for building work undertaken on the Emperor Living development in Mawson Lakes, according to its statement of claim.

But in its defence Barbaro Builders has claimed that SA Formwork’s invoices had no legal standing and that it had issued invoices when it knew that work on the project had been suspended in April last year until further notice.

The legal stoush comes just weeks after The Advertiser revealed that work on the eight-storey project had stopped amid a continuing Consumer and Business Services investigation into concerns Barbaro Builders was acting outside licence conditions.

Emperor Living building site in Mawson Lakes on the corner of Main St and Metro Parade. If finished, it will be the tallest building in the northern suburbs. Picture: Gabriel Polychronis

Barbaro Builders is licensed to national construction code Class 10 residential building work not exceeding four storeys.

The Emperor Living project, on the corner of Metro Parade and Main Street, will include nine shops, six offices, 63 apartments and would become the tallest building in Adelaide’s northern suburbs.

Salisbury Council approved the project by delegated authority in June 2016 and last December granted Barbaro Builders a 12-month extension to its approval.

According to its claim, lodged last week, SA Formwork said it entered into a $2.354m contract with Barbaro Builders around January 24, 2017 for the supply, installation and removal of formwork, which is used as a concrete mould.

It said the contract price was increased to $2.361 million on May 16, 2017 and it was agreed that the work would be done within about nine months.

It said that by February 2018 Barbaro Builders had “failed to progress the project and undertake the building and construction work within a reasonable time frame”.

“By February 2018 the second defendant had from time to time failed to pay the plaintiff’s progress payment claims on time and was taking longer to pay the claims,” the company’s claim said.

It said that by February 2018 it had supplied and installed about 3000sq m of formwork, which remained on site and which it was incurring “significant costs” at a weekly rate of $7 per sqm.

It said that Barbaro Builders’ director Francesco Barbaro had failed to dispute the hire costs until November last year despite having been issued multiple payment claims.

SA Formwork is suing Barbaro Builders in the District Court seeking payment of $1.168m in material hire fees and $94,200 for building work undertaken on the Emperor Living development in Mawson Lakes. Picture: Gabriel Polychronis

In defence Barbaro Builders said that SA Formwork was not entitled to issue payment claims for “alleged costs related to a delay”.

“The plaintiff’s (owner) Mr Herman Erich discussed and agreed with Mr Francesco Barbaro that the development was to be suspended with the subcontract to be deferred in or around April 18 with no further work to be undertaken ... until such time as (Barbaro Builders) directed otherwise,” it said.

The matter returns to court on Friday.