Joseph Sommariva says he is owed $3.4 million for the construction of 250 East Tce

A builder says has taken legal action to safeguard a $3.4 million payment he says he is owed for building a city apartment block.

250 East and Pajo Projects' 250 East Terrace apartment project at 250 East Terrace, Adelaide. Picture: Giuseppe Tauriello

The builder of a city apartment block – once at the centre of a dispute involving a former high-powered federal minister – has taken legal action to protect a multimillion-dollar construction bill.

Joseph Anthony Sommariva has filed a District Court claim against his own company, Pajo Projects, and 250 East Pty Ltd for $3.4 million he claims remains outstanding for the construction of the 250 East Tce development in the city’s East End.

Mr Sommariva, who is sole director of Pajo Projects, has placed caveat and worker’s liens on six apartments in October in a bid to protect his $3.4m interest.

The building, with 14 apartments, is a joint venture project between Mr Sommariva and 250 East Pty Ltd director Rod O’Neill.

250 East and Pajo Projects' 250 East Terrace apartment project at 250 East Terrace, Adelaide. Picture: Giuseppe Tauriello

Mr Sommariva told The Advertiser that the claim was merely procedural to ensure that his interests were protected when the final apartments were sold.

“It’s just an accounting thing so I can get priority over the properties being sold,” he said. “Because I’m a developer-builder, I loaned the company $3.4m to finish off the job.”

In his District Court claim, Mr Sommariva says he was hired in May 2015 on a $19.5m contract to build the seven-storey apartment block, which overlooks Victoria Park.

He says he is owed $2.6m for construction works and $800,000 for “planning fees, architect fees, rates, taxes, utilities and other professional fees”.

Joseph Sommariva

In the District Court statement of claim, Mr Sommariva states that in October 12, 2021, 250 East and Pajo Projects had “acknowledged receipt of the demand (for payment)” and had agreed that the $2.6m for construction work was “due and payable”.

He also claims they had “consented” to judgment being entered in his favour for “any portion of the construction work”.

He is seeking enforcement of the lien and full payment of the $3.4m plus interest and costs.

Pajo Projects had not filed any defence.

In the claim, Mr Sommariva says the project reached “practical completion” around February 3, 2020. Mr Sommariva had told The Advertiser in September 2020 that the project was to be finished in October 2020, after a two-year delay.

The Advertiser revealed in September that former federal defence minister Ian McLachlan had sued 250 East Tce and Pajo Projects for $650,000 in damages, accusing the companies of failing to meet an agreed construction deadline for a $3.01m apartment.

But the matter was discontinued in November, according to Supreme Court records.

Mr Sommariva confirmed the matter had been settled confidentially.