GCB Constructions boss Trent Clark reveals what will happen to Marine Quarter tower development
It’s been revealed when work on the second stage of a $97m tower project will begin after a court stoush between the builder and developer was settled. What the builder said:
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Work on the second stage of a $97m tower project will begin by the start of June after a court stoush between the builder and developer was settled.
Varsity Lakes company GCB Constructions was sued by a subsidiary of Buildcap, developer of the Marine Quarter towers at Southport, after a disagreement over costs and the project’s timeline.
The first tower in the project has been steadily rising next to the Broadwater Tourist Park, but the companies were at a stalemate over when the second stage should commence.
The case was set for a civil trial in the Brisbane Supreme Court from April 3-11, however it was discontinued by the developer on March 17 and the trial was vacated.
GCB Constructions managing director Trent Clark said the parties had come to “a mutual agreement” to ensure the project could progress.
“We’re ready to start stage two at the end of May, start of June,” he said.
“We just want to get the project up and running, get it moving.
“From a contractual start date on stage two, we don’t have to start until July but we’ve compromised and said ok, we’ll start prior to that.”
The project’s first tower, initially mooted to be completed next month, was now on track for completion in mid-September, Mr Clark said.
Mr Clark said poorly-worded contracts had contributed to a breakdown in communication between the parties which had landed them in court.
He said it was a relief to put the matter behind him and get on with the project.
“There was a bit of poor wording in the contract, which made it a bit hard for the parties to try and work it out, hence why we had to come to an agreement,” Mr Clark said.
“You never go into business to get involved in court battles, you want it always to be working together and collectively so, it’s good to not have that burden sitting there and to get on and do the job.
“We can work through it, get it completed and get those settlements happening.”
Mr Clark said settlements for stage one would be late this year.
Marine Quarter is the largest project ever undertaken by GCB, which has grown swiftly in recent years, leapfrogging revenue categories to now have a licence for work worth up to $240m a year.
In 2017-18 its construction work logged with the QBCC was just $2.7m.
Mr Clark said the growth was sustainable and that he expected the company to turn a profit this financial year – a feat few construction companies look likely to achieve.
Even Scott Hutchinson, head of long-established major builder Hutchinsons, has said times were tough – and that’s with a $388m balance sheet.
“It’s bad at the moment, I’ve never seen it like this,” Mr Hutchinson told the Courier-Mail last week.
“We’ll be right, we’ve got a big balance sheet, but we’re not going to make money this year I don’t think.”
In FY21-22, GCB made $938,755 net profit from revenue of $92.04m. Its net profit the previous year was $1.1m from $67.4m revenue.
Mr Clark said GCB had “other businesses” which would help his company grow sustainably, although he declined to elaborate.
“We’ve got our construction company, but there’s plenty of things behind the scenes that people don’t realise that we have,” he said.
“(But) it’s not the time to go out and try to pick up every project.
“I think you’ve got to be wise in what you pick and who you work for – we’re very lucky that we’ve got very regular clients and good clients.
“We will still make a profit this year, yes we will.”
The company was hit with an unexpected $2.7m spend to replace its Lismore office after it was destroyed during the 2022 floods, Mr Clark said.
“We didn’t get any money last financial year from insurances or from any government handout, and we had to build a whole new office down there – we lost 13 vehicles from that flood,” he said.
“Sometimes, you’re dealt some unfortunate circumstances, but you’ve just got to deal with it, keep pushing through.
“There’s a lot of good subcontractors out there, we have some very good, loyal subcontractors who have been absolutely great to us and helped us, so you’ve got to thank them for it.”
Asked whether GCB’s current subcontractor payments were up to date, Mr Clark said “we’ve got our agreements with subcontractors and we’ll take them up with them”.
He did not wish to discuss subcontractor payments further.
Mr Clark said GCB had adjusted its pricing to suit challenging supply conditions.
“I think everyone in the industry has had to adjust in terms of exploding price,” he said.
“Everyone has had to make some adjustments in one way or the other.
“At the end of the day, I don’t think anyone’s able to tell the future, there are so many external factors that can change things overnight.
“I’m not an economist, I’m a construction guy so I’ve just got to deal with the information that we have.”
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