GCB Constructions faces wind-up court action from supplier Onten Recruitment Services

An embattled major builder is facing multiple court actions from suppliers, including a wind-up action – but the company’s boss says the situation is under control. Here’s why

Embattled builder GCB Constructions is facing multiple court actions from suppliers, including a wind-up action – but the company’s boss says the situation is under control.

Recruitment company Onten has applied to liquidate GCB over a $41,250 debt for its work in finding a chief financial officer for the company.

Separately, GCB is co-defendant with developer Rayjon Group, in two debt claims by Master Aircon and RDE Electrical, suppliers of the Vantage Gold Coast project near Royal Pines.

In a statement to the Bulletin Wednesday afternoon, managing director Trent Clark said GCB had “resolved” the matters.

“Payment was made to Onten today in full, with payment to Master Aircon and RDE to occur once final documents are signed,” the statement said.

Onten could not be reached for comment on Wednesday afternoon.

Vantage View apartments at Benowa where work has stopped and construction staff have collected their tools. Picture: David Clark

Concerns have simmered about the financial status of GCB Constructions since subcontractors downed tools and exited sites on May 8, claiming they hadn’t been paid.

The crisis halted construction of more than 500 apartments across the Gold Coast.

Mr Clark’s statement said he’d engaged Hickey Lawyers to set up project trust accounts in an attempt “to give principles, developers, and subcontractors comfort that all money being paid into projects are being on paid to all subbies and contractors in full”.

Mr Clark said his company remained solvent and some work had recommenced at projects in Southport, Bilinga, Palm Beach and Byron Bay.

GCB is also battling major cases with two developers of its projects, with one set to go to trial.

GCB Constructions boss Trent Clark.

Four companies related to Dean Gallagher’s GDI Group, developer of the 27-storey Drift tower at Main Beach, launched action in May against GCB Constructions.

GDI claims the building company failed to lodge security bonds worth more than $3.7m and then locked the developer out of the site when it tried to take possession.

In turn, GCB alleges the developer owes them $3.8m in progress payments – more than the security required under the contract.

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

The Ascot Aurora site in Ascot, Brisbane. Photo: Lyndon Mechielsen

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.

That case is set for review on July 13.

In Onten’s wind-up application, director Michelle Gray said her company issued a statutory demand to GCB on May 4 after two invoices, for February and March, went unpaid.

The application seeks to wind up GCB “on the grounds of insolvency” and to appoint David Hambleton of Rodgers Reidy as liquidator.

The case was set for a hearing on July 11.

Work stopped on GCB Constructions sites early in May. Picture David Clark

Mr Clark said “GCB Constructions maintains a solvent position despite cashflow restraints.”

“Additional payments are being processed and we expect to have the majority of our teams back on site over the next week or so,” he said.