McNab disputes payment on Ignite Group’s controversial tower The Monaco at Main Beach

The developer and builder of a luxury tower in a high-profile location have been locked in a multimillion-dollar contract dispute. Read what happened

The developer and builder of a luxury tower in a high-profile location have been locked in a multimillion-dollar contract dispute.

Construction giant McNab and a company related to local developer Ignite Projects took their stoush to the QBCC, which told the developer to cough up more than $3.6 million for work on The Monaco tower near Southport Surf Lifesaving Club at Main Beach.

The adjudication is well short of the $33 million McNab had claimed from Ignite company Elevate Main Beach, citing a raft of delays and buyer variations to the original contract.

Of the $3.6 million awarded to McNab, $2.7 million had already been paid by the developer, leaving $900,000 to be paid as a result of the adjudication.

The Monaco Main beach is almost completed. Picture Glenn Hampson

The developer broke ground on the 23-storey tower in September 2021, after a difficult two-year process which saw a proposal for “sky garages” dumped from plans after a campaign waged by anti-development activists and nearby residents.

The project was all but sold out off the plan, with the two-storey penthouse selling to a Sydney buyer for $9.5 million the week before construction started.

The sky garage element of the tower, which was due to be completed at the end of last year, was replaced with an underground carpark similar to that of other high-rises in the area.

The Monaco Main Beach was originally going to allow residents to stare at their cars inside their home.

A 95-page adjudication from QBCC officer Sean Milne said “there may exist double or even triple dipping” in McNab’s payment claim.

The adjudication said some parts of the builder’s claim sought to be paid for items which had already been included in other totals.

“Largely, the Claimant’s failure to identify, separate and substantiate claims is the foundation of the dispute in this adjudication,” Mr Milne wrote.

The adjudication said McNab’s application to the QBCC was “materially and substantively” different to its initial payment claim.

An aerial shot showing the site for the Monaco building at Main Beach on the Gold Coast.

While McNab’s payment claim was for $32.3 million, it had only sought to be awarded $13.1 million in the adjudication, the report said.

The Monaco was approved in August 2020 after fiery disputes with Main Beach residents who feared its shadow and extra cars from the tower would impact their lifestyle.

The boutique tower featured sky garages when approved, but they were dumped in favour of underground parking following buyer feedback the following year.

Originally published as McNab disputes payment on Ignite Group’s controversial tower The Monaco at Main Beach