Gold Coast Commonwealth Games Village builder Grocon may not keep its licence as QBCC probe

A MONTH from handing the $550 million Commonwealth Games Athletes’ Village to GC2018 organisers, the contractor charged with building it had its licence restricted. Here’s what we know.

QUEENSLAND’S building regulator is investigating whether to cancel the building licence of the key Commonwealth Games Athletes’ Village contractor after yesterday forbidding it from taking on new business.

Grocon Constructors (Qld) Pty Ltd, which is a month away from handing the $550 million village to Games organisers, is building a 168-unit tower at 27 Old Burleigh Rd in Surfers Paradise, and has plans for other major projects in Brisbane.

The Athletes Village is due for handover to GC2018 organisers next month, but the builder’s licence has been restricted.

The Queensland Building and Construction Commission yesterday added a condition to the company’s licence saying it “must not provide tenders or quotes, or enter into any new contracts, for the performance of building work as defined in the Queensland Building and Construction Commission Act 1991 until it is notified in writing by QBCC”.

SENATE COMMITTEE RECOMMENDS NATIONAL BUILDER LICENCE

A statement from the watchdog late yesterday said it was “determining if the company meets its licensing obligations”.

“The QBCC has not received any money owed complaints from subcontractors or suppliers in relation to Grocon Constructors (Qld) Pty Ltd,” the regulator said.

Premier Annastacia Palaszczuk and former Games Minister Stirling Hinchliffe with Grocon Executive Chairman Daniel Grollo and site manager Michael Moore from Schoenauer Pty Ltd. Pic by Richard Gosling

Despite the probe, Commonwealth Games Minister Kate Jones said the QBCC decision would not impact Grocon’s delivery of the Parklands project.

“The project remains on track for handover to GOLDOC in early October,” she said.

A statement from Grocon’s public relations firm said the restriction would not affect the Athletes’ Village project but would not elaborate on why they’d been restricted or how long they would be restricted.

“This is a matter that Grocon had previously advised the QBCC would be rectified,” the statement said.

Last month Grocon agreed to pay $1,002,500 to 29 subbies, left out of pocket when village subcontractor Ware Building Pty Ltd went into liquidation.

Construction continues on the Commonwealth Games Athletes Village at Southport on the Gold Coast.

Subcontractor advocate John Goddard, of subbiesunited.com.au, was concerned small businesses on the Gold Coast could be left holding the can if Grocon’s woes intensify.

“If the QBCC are still allowing them to trade, I would hope they have something in place to ensure subbies get paid for the work that is ongoing,” he said.

“If the worst should happen and Grocon should fail, that million dollars they paid out to (Ware Building) subbies may have to be returned as preferential payments.”

The individual licence holder of the Grocon Constructors Qld, Melbourne-based Daniel Grollo, is executive director of parent company Grocon Pty Ltd.

He was also licensee for two other Grocon companies, Grocon Constructors Pty Ltd and Grocon Developments (Parklands) Pty Ltd, which no longer have licences.

Grocon Constructors (Qld) is licensed for constructions up to $240 million in value in any financial year. It has no records of bans, disqualifications or demerit points.

Games chairman Peter Beattie said the village was not Goldoc’s responsibility until next month’s handover.

“I’m happy to take responsibility for matters within our control but we don’t have the village until October 1,” he said.

“I believe the village will be one of the positives of the Games — during and as a legacy.

“It’s going to be one of the great icons and it’s already changed the landscape of the Gold Coast.”

The Athletes Village from the air. Photo: AAP IMAGES

KNOWING GROCON

IN 1954, Luigi Grollo founded construction company Grocon.

More than 50 years later, the small Victorian business specialising in concrete works and pools has blown out to a much larger company developing huge projects across the east coast of Australia.

Notable projects include 480 Queen Street in Brisbane, 5 Martin Place and The Ribbon in Sydney as well as AAMI Park and the Grand Hyatt in Melbourne.

On the Gold Coast the business has been involved with the Oracle in Broadbeach, Soul in Surfers Paradise and the 2018 Commonwealth Games Athletes Village in Southport.

Last month, the construction company also lodged a development application for an 168 apartment tower on Old Burleigh Road in Surfers Paradise.

Grocon had recently paid out more than $1 million to 29 subbies working at the Athletes Village after contractor Ware Building Ltd went into liquidation.

Craig Mitchell has been CEO since July 2016.