Grocon fined over late payments to subcontractors on Gold Coast Commonwealth Games Village

Commonwealth Games Village builder Grocon has been slapped with the first fines issued under new laws aimed at making sure subcontractors are paid on time. Here’s what they’ll be forced to pay.

COMMONWEALTH Games Village builder Grocon has been slapped with the first fines issued under new laws aimed at making sure subcontractors are paid on time.

The builder’s Queensland company was issued $27,000 in penalties over its treatment of subbies working on the $650 million project.

However John Goddard, founder of subcontractor advocacy group Subbies United, said the $27,000 slug would do little to deter big operators from ripping off workers.

“For a builder as big as Grocon, it’s pocket change, a slap on the wrist,” he said.

“Especially for the worry, stress and hardship they put everyone though.

“It was only thanks to pressure from the Gold Coast Bulletin that it even got sorted.”

HOW ABU DHABI BOUGHT THE GC2018 GAMES VILLAGE

The Gold Coast Commonwealth Games Athletes Village.

Games Minister Kate Jones was forced to step in last year after tradies working on the project complained they were out of pocket by more than $2 million dollars.

The Queensland Building and Construction Commission suspended Grocon’s licence last October after it failed to meet financial requirements and the company surrendered it completely the following month.

The commission said it understood all affected workers had been paid, but decided to act over the lateness of the payments.

Commissioner Brett Bassett said he hoped the fines would deter other companies who did not pay workers on time.

“Our disciplinary action against the company marks the first time we’ve used this section of

the QBCC Act and we won’t hesitate to use it again in cases where payments are being

made late to licensees,” he said.

“The QBCC will continue to do all that we can to help subcontractors to get paid in full and

on time for the work that they do.”

DESPERATE SUBBIE THREATENS GROCON EXEC

The Commonwealth Games Village under construction at Parklands Photo: David Clark

Construction of the village was funded partly by the State Government and by a partnership between Grocon and the Abu Dhabi Government.

In March 2014, when the government announced the deal, it bragged that it would slash the cost of delivering the village to $130 million — down from estimates well over double that.

While the agreement was pitched as a win-win for taxpayers and politicians, the wins did not end up flowing to Grocon, which wound up its Queensland operations this year after losing a reported $20 million on the job as well as its licence to build in the state.

The developer was dogged by revelations it had made a secret request for the State to cover a major cost blowout, as well as cash flow problems that saw it delay payments to scores of subcontractors.

The apartments have been put on the rental market as the Smith Street Collective.