Getting mouldy: Queen’s Wharf legal fight takes another twist

Construction giant Multiplex says an outbreak of dangerous mould at the Queen’s Wharf site contributed to delays in the project now at the centre of a $400m legal battle.

It seems everything has been thrown in the way of the $3.6bn Queen’s Wharf project finishing on time. Construction giant Multiplex, which is embroiled in a $420m law suit against Star Entertainment and its partners in the Destination Brisbane Consortium (DCB), has blamed everything from the death of Queen Elizabeth II to Covid-19 workplace shutdowns for delays in meeting construction deadlines. But tucked away in a 187-page damages claim lodged in the Brisbane Supreme Court is another reason they claim has delayed the project - an outbreak of dangerous mould.

According to the offset claim lodged in court by Multiplex, the company lost two days of work and incurred clean up costs after a severe rain event caused an outbreak of mould on the site in May last year. “Upon inspection of the site following the severe rain event, Multiplex observed that in some locations mould had developed including but not limited to hoardings, material pallets and storage boxes,” the claim says.

“Multiplex commenced testing of all areas exposed and procured a testing specialist from interstate. While the testing was underway it was determined that the mould presented a risk of harm to human health and potentially made areas of the site unsafe.”

Queen's Wharf Brisbane.

Multiplex also is claiming unforeseen additional costs incurred in giving workers a holiday to mourn the death of Queen Elizabeth II that resulted in the loss of two productive days along with two-years of disruptions due to Covid-19 lockdowns. This included $2m for extra cleaning and other measures to ensure social distancing by workers on the site.

After six years of construction Queen’s Wharf is expected to open in April 2024 and feature four hotels with about 1000 rooms, restaurants, a casino and retail space.

But the project has been dogged by delays for at least two years and faces cost overruns of at least $260m. Star has previously flagged the project would open at the end of this year, but this has now been pushed back to next April.

Star chief executive Robbie Cooke foreshadowed last year that the revised opening date followed careful consideration of current progress by its builder. “Queen’s Wharf has not been immune from the types of pressures that other major infrastructure projects across Australia have encountered,” Cooke (illustrated) said at the time.

Robbie Cooke.

It’s all turning into a huge and costly court battle. Multiplex is seeking offsets and claims of more than $400m DCB, led by Star Entertainment, is in turn seeking up to $300m from Multiplex for failing to meet construction deadlines.

Queen’s Wharf is now more than a year behind schedule. Multiplex was issued with a $123.6m demand on July 10 under a so-called liquidated damages provision in the building contract. Liquidated damages specify a sum a contractor must pay if they fail to complete the works within a specified period.

Multiplex claims it does not have to pay damages caused by delays out of its control including wet weather, pandemic shutdowns and unforeseen holidays, including a day of mourning for the late Queen Elizabeth II.

Not withstanding the legal action, the completion of Queen’s Wharf is expected to be a priority for Multiplex given the firm has a growing pipeline of State Government projects in Queensland. Multiplex was this year awarded the tender for the design stage of the new $1.3bn Coomera Hospital and $1.148bn extension of the Redcliffe Hospital.