Developer forced to fix serious defects in two Parramatta apartment towers

The developer of two 22-storey apartment towers in Parramatta’s CBD has been issued with orders preventing it from allowing owners and tenants to move in after serious defects were discovered.

Known as Imperial, the towers at 9 Hassall Street contain 179 units between them. The towers, which were nearing completion, are still unoccupied but a number of apartments have been sold off the plan.

One of the 22-storey apartment towers at 9 Hassall Street in Parramatta’s CBD.Credit: James Brickwood

The developer, Merhis Group, is the same company that was responsible for a 16-storey apartment building in Auburn that was issued orders last year to resolve major defects.

The extent of defects in the Auburn building prompted NSW Building Commissioner David Chandler two years ago to convince the state government to give him the powers to clean up the industry. At the time, he described the Auburn tower as “probably the worst” he had inspected.

The two-tower project known as Imperial in Parramatta’s CBD contains 179 apartments.Credit: James Brickwood

The commissioner issued a prohibition order on Wednesday for the Parramatta towers after inspectors found “serious defects” in an internal load-bearing part of the complex, as well as in its waterproofing and a fire-safety system.

They discovered a structural steel frame in the basement had inadequate protective coatings to prevent corrosion, while fire systems had been installed without complying with fire resistance tests.

The prohibition order will stop the developer from gaining an occupation certificate until the defects have been fixed. The building commissioner has repeatedly warned that he will use his powers to prevent developers from forcing people who buy off the plan to settle on apartments in buildings with significant defects.

Hassall Developments is the company that has been issued the prohibition order but Fair Trading confirmed that the tower complex was part of the Merhis Group.

Merhis managing director Dave Stickland said the developer took the matters “very seriously” and had engaged independent experts to assist in working through the issues raised.

However, he said the building project was still under construction and the developer did not accept that there were “any outstanding serious defects”.

NSW Building Commissioner David Chandler has convinced the state government to give him the powers to clean up the industry.Credit: Kate Geraghty

“Completion of any sales and occupancy will not occur until compliance is achieved – there will be no issues for the purchasers,” he said. “The developer is not walking away from any issues.”

The growing pressure on developers to ensure their projects comply with building standards comes as the next phase of protections for apartment buyers in NSW comes into force on Thursday.

The measures under the Design and Building Practitioners Act will require designers, engineers and builders who work on apartment buildings to be registered. Designers will have to declare that their designs comply with standards and that they are lodged on NSW Planning’s online portal.

Mr Chandler described the new laws as the “serious phase” of efforts to shake up the industry and instil confidence in the public about buying apartments, after it was dented by the evacuation of Opal Towers in December 2018, and Mascot Towers six months later.

“Up until now we have been issuing warnings and we have been doing [occupation certificate] audits but now it is a legal requirement to properly design buildings and to make sure those designs are done before construction starts on site,” he said.

“The message to developers is that the days of construct and design are over. Our goal is to make sure we have customers coming back into the market in NSW because we need the stock.”

NSW Better Regulation Minister Kevin Anderson said designs for high-rise apartment buildings would have to be to a minimum standard and lodged with the regulator.

“The days of poor quality design are over,” he said. “We’ll also be undertaking targeted audits of those designs, so that issues can be identified and addressed before building works commence, saving everyone involved time and money, and avoiding disappointment and stress for buyers.”

The Morning Edition newsletter is our guide to the day’s most important and interesting stories, analysis and insights. Sign up here.