Jewel development losses could be the worst in Gold Coast history

MONEY lost in the Jewel uncertainty could be the worst the Gold Coast has ever seen, exceeding the $30 million Cullen Group losses, says a leading construction expert.

A LEADING construction expert says the Jewel development losses could be the worst in Gold Coast history.

President of Subbies United John Goddard has 30 years experience in the industry and started the foundation to fight for the rights of subcontractors.

He said in situations such as this one, it’s usually the subcontractors that lose out by millions of dollars in unpaid materials, labour and future work.

He said it was only comparable to the $30 million Cullen Group collapse in 2016, however if every subcontractor is terminated as has been rumoured, this Jewel figure will top that.

“You tale the Cullen job in Robina — over $30 million lost on that job and mainly subbies,” he said.

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Workers have been told to finish up what they are doing and leave. Picture Glenn Hampson

“I’ve seen a hell of a lot fall over for $10 or $20 million and it’s not clear what’s happening yet but if it goes the way it seems to be I’d say Jewel will be the worst the Gold Coast has seen.

“Anyone in the building industry knows the main money is towards the end.

“You’ve got to pour hundreds of thousands in before you even see a cent in quoting, surveyors, negotiations, manufacturing or ordering.

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“That’s what you’ve got to do as a subbie — hundreds of thousands of credit without any security or collateral.

“I know of 140 workers that are out of jobs. Their businesses are going to be affected badly and some might even lose them.”

One worker said there was expected to be at least 80 per cent of employees from his company let go next Wednesday.

Many workers walked off site this morning as their future remains hanging in the balance. Picture Glenn Hampson

Subcontractors have been told to finish up what they are doing and leave.

They are not to start any new jobs or areas.

As a result, bosses are faced with giving every man a few days work or giving a small portion of staff two weeks work.

This particular employer has offered to pay staff over the public holiday, even though he wasn’t required to.

This particular tradesman is older than 50 and has two sons who will also lose their jobs.

He said everyone losing their job has a different story.

Much of the three tower’s exterior is complete. Picture Glenn Hampson

Men who expect their house will be repossessed if they can’t find work soon, men who have pregnant wives or new babies, men who planned for a year of work.

“This runs deep,” he said.

Yesterday it was announced that the beachfront $1 billion Jewel development in Surfers Paradise would be halting parts of its construction and retendering.

Close to 1000 subcontractors have been left in limbo, with hundreds rumoured to already be out of a job.

This morning many workers walked off site, saying they would return when their future was certain.