Waterside developer and demolition contractor talking `through lawyers’
THE stalemate over the Waterside asbestos crisis will almost certainly end up in court with the developer refusing to pay the demolition contractor.
Central Coast
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THE stalemate over the Waterside asbestos crisis will almost certainly end up in court with the developer refusing to pay the demolition contractor.
The developer, Sydney-based New Hong Kong Macau Australia, ceased paying Integrated Construction Equipment (ICE) Demolition for works to the site after the discovery of asbestos buried under concrete slabs in November.
The cost of removing the contaminated material and dumping it at an approved waste facility saw the demolition costs allegedly spiral four times over budget.
The developer stopped paying invoices and in turn ICE Demolition downed tools.
An end to the stalemate was hoped to be reached last week with East Gosford firm CKDS Architecture — who designed the three-tower, 550-apartment complex — brought in to broker a peace deal.
The Express Advocate can this week reveal contract discussions to resume work to clear the site have collapsed.
CKDS Architecture director Caine King said his firm was largely a third-party observer with both parties now talking to each other “through their lawyers”.
He confirmed reports the developer would not pay the demolition company almost $400,000 in outstanding payments unless the contractor signed a new contract.
However, the demolition company is refusing to sign a new contract because it wants the original contract honoured first.
The Express Advocate understands the new contract would also involve a flat rate to remove the remaining material, leaving the contractor liable to cover any other unforeseen cost blowouts should additional asbestos or other contaminated waste be discovered on the site.
Billed as the catalyst for the revitalisation of the CBD, Mr Caine said he hoped the triple tower complex would go ahead.
Attempts to contact New Hong Kong Macau Australia were unsuccessful.
ICE Demolition owner Tony Fenwick meanwhile declined to comment because the matter was “now subject to legal proceedings”.
Dubbed the “Barangaroo of Gosford”, the $234 million Waterside development on the old Frogy’s rollerskating rink has been a blight on the city skyline for nearly two decades.
It is now likely to be many months more before anything happens on site while lawyers from both sides negotiate a way forward or slug it out in court.