Five more companies join wind-up action as subbies blast QBCC for not taking licence action sooner

The director of embattled Gold Coast builder GCB Constructions insists his company is viable, despite five more companies joining court action to wind it up. Find out the latest on the situation

The director of embattled Gold Coast builder GCB Constructions insists his company is viable, despite five more companies joining court action to wind it up.

GCB managing director Trent Clark said he was “determined and confident” of overcoming financial struggles which have seen work slow to a trickle or completely stop at sites along the east coast since May 8.

There has been good news for buyers in GCB’s largest project, Marine Quarter at Southport, who were told via email the site’s tower crane would return to operation and concrete work would recommence this week.

Subcontractors and suppliers of the company have lashed Queensland’s building regulator for not taking more decisive action on GCB’s licence.

The licence was restricted on June 26, requiring GCB to submit its accounts weekly and preventing it from taking on new projects without express QBCC approval.

The QBCC acted almost two months after sites had shut down – amid subbies’ complaints they had not been paid – and a month after the wind-up action was initiated.

A handful of staff worked on the highrise Vantage project at Benowa last week. Picture Glenn Hampson

“The QBCC needs to be held accountable for allowing this company to continue (to do construction work),” said one supplier, who said they were owed more than $100,000.

“To hold a builder licence, you’re supposed to be financial, but it’s only two weeks ago they’ve actually intervened and put limitations on their licence – but that’s not helping anyone.

“The company’s licence should have been instantly suspended when the problems started.”

The business owner said the QBCC was not doing its job.

“The QBCC Act says in black and white that debts owing by a licence holder should be paid on or before the due date.”

The QBCC declined to comment on GCB’s situation, citing “privacy and confidentiality obligations” under the Act.

GCB Construction site operating on small staff numbers at Palm Beach on the Gold Coast. Picture: Glenn Hampson

GCB Construction site Golden Four Drive Tugun had few people on site last week. Picture: Glenn Hampson

When asked in June about the wind-up action, initiated by OnTen Recruitment, Mr Clark said the issue had been resolved.

However, the case remains live in the Supreme Court system and five more businesses have joined as creditors.

Mr Clark did not answer questions about the current status of the wind-up.

“Court actions are regularly taken against builders and we are working through these in an orderly fashion,” he said in a statement.

“We have had court adjudications in our favour and we are looking forward to others also being ruled in our favour so we can get on with servicing our clients and customers.”

Mr Clark said “all our sites are operational”.

Buildcap, developer of the $97m Marine Quarter development under construction by GCB at Southport, emailed buyers on Wednesday, telling them work was due to ramp up on site this week.

“Works ... include the pouring of the slab of level 26 as well as level 27 stairwell and core walls, along with external facade works such as installation of windows and balustrading, render and painting,” the email said.

“It is exceptionally pleasing to see that the site is once again a hive of activity, with internal tiling and joinery trades also hard at work.”

Trent Clark, managing director of GCB Constructions

But down the coast at Yamba, where GCB was building a 50-apartment retirement building for Uniting, work stalled in October and has not resumed since.

One family business owner said they were owed a six-figure sum by the builder, who had ceased all communication with them by February.

A statement from Uniting on Wednesday said “disappointingly work on the apartments and clubhouse remains on hold for now.”

“While it’s expected that there will be a delay, Uniting is committed to completing all the planned works, including the apartments, and building a vibrant welcoming community,” the statement said.

Mr Clark did not answer the Bulletin’s questions about the Yamba project.

Trent Clark (far right) at the launch of the new Uniting Yamba retirement village site over a year ago.

GCB sites along the Gold Coast have seen a handful of subcontractors return, although two key projects will not be completed by the company at all.

The company is battling major cases with two developers of its projects, which GCB claims owe it more than $14m, neither of which look likely to be resolved in the near future.

Dean Gallagher’s GDI Group, developer of the 27-storey Drift tower at Main Beach, launched action in May against GCB, claiming it failed to lodge security bonds worth more than $3.7m.

In turn, GCB alleges the developer owes them $3.8m in progress payments.

The case has been set for a hearing on August 2.

GCB Construction site operating on small staff numbers at 309 Golden Four Drive Tugun on the Gold Coast. Picture Glenn Hampson

GCB is suing the developer of the $196m Ascot Aurora project in Brisbane, seeking more than $10m from a subsidiary of China-owned Poly Global.

Poly has lodged a defence and counterclaim in that case, and both parties have been given until mid October to disclose their evidence.

Mr Clark did not answer questions on how important succeeding in those cases was to his company’s viability, except to blame the alleged “non-payment from developers” for “some of the hiccups we have experienced”.

“We are continuing to work across all sites to complete payments to our subbies and tradespeople,” he said.

GCB’s licence remained active on Tuesday.