QBCC places restrictions on GCB Constructions licence after sites sit idle and court actions mount

A besieged builder, whose sites have sat idle for almost two months as court actions mount, has suffered a new blow.

A besieged builder, battling multiple court actions as its sites sit idle for a second month, has suffered a fresh blow from the building watchdog.

Seven weeks after subcontractors walked off GCB Constructions sites along the Coast, claiming they hadn’t been paid for their work, the Queensland Building and Construction Commission placed restrictions on its builder licence on Monday.

GCB is banned from providing tenders or quotes, or entering into any new contracts, for the performance of building work without the regulator’s written permission.

GCB must also provide the QBCC with an “aged” listing of debtors and creditors by 5pm each Friday, starting this week.

The GCB Constructions Marine Quarter site in Southport. Pic: Kathleen Skene

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.

One of the businesses, Onten Recruitment, has lodged a wind-up action over a debt allegedly incurred when it helped find GCB a new chief financial officer.

GCB managing director Trent Clark told the Bulletin Onten had been “paid in full” and that the case would not go ahead.

In respect to the licence restrictions, Mr Clark – who has repeatedly maintained his company is solvent – said the decision not to undertake further jobs was a “condition we have already placed on ourselves”.

“It would not be fair to our existing trades and suppliers or current developers,” he said.

“Our focus is not presently about future contracts but fulfilling our obligations on our current jobs which we are working through in an orderly fashion.”

Mr Clark said work “has resumed on many of our sites” and outstanding payments continue to be made as the company worked through issues out of its control.

“We are solvent and expect to continue to be solvent as we complete our payment plans to our clients.”

GCB Constructions Vantage View apartments at Benowa. Picture: David Clark

The developer of one of GCB’s sites, Amaya Broadbeach, announced last month it would take on the build itself.

Multiple subcontractors and suppliers have launched court action against the company in the past two months, while GCB is also battling major cases with two developers of its projects, with one set to go to trial.

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.

Dean Gallagher, the Drift site and Trent Clark.

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

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.