Major Gold Coast construction player forced to close sites from Robina to the border
HUNDREDS of subcontractors are facing their worst Christmas with some out of pocket more than $100,000 after work stopped on a major residential tower project.
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HUNDREDS of subcontractors are facing their worst Christmas, with some out of pocket more than $100,000 after work was stopped on a major Gold Coast residential tower project.
Furious buyers who expected to move into their units in October, are forking out $120 a day in accommodation, unsure of when their $580,000 terraced apartments at Robina’s Boheme project will be finished.
Documents reveal the Cullen Group Australia Pty Ltd, based in Brisbane with major projects south to Byron Bay, had its builder licence suspended last Thursday.
The Subcontractors Alliance estimates at least up to 300 subbies face losses and is calling on the State Government to fast-forward laws due in 2019 which will protect tradies from building company collapses.
A leading building industry insider told the Bulletin: “I know one construction guy who is owed $100,000. There is plumber on the Coast, he is waiting on $160,000.
“They’re all crying right now.
“There will be a lot of people (in the building industry) hurting this Christmas.”
A subcontractor who worked with the Cullen Group confirmed tradies were not being paid.
“They’ve got eight major projects on the go,” the subcontractor said.
“It could involve up to 300 subbies.
“They probably have as much on as any builder at the moment.
“I’ve rung their supervisors and no one is answering.
“This is a pretty devastating thing to happen at this time of year for people.”
The two-tower project is the centrepiece of the Robina Group’s $250 million CityVillage development, just 250m south of the Robina Town Centre and has 129 apartments in a resort-style development.
An elderly couple who invested in a terraced apartment said they had been unable to obtain answers on when they could move in.
“We put a deposit down in October 2015. When we initially purchased we were going to settle around October this year,” the elderly buyer said.
“We’ve had to move three times. For our block there is just a slab down — it’s been slow, slow, slow.
“This is our prime residence. We are paying $120 a day for a place in Varsity Lakes.
“It’s costing us a fortune.”
The Robina Group which is overseeing the $100-million project confirmed all claims for payments were being made to the Cullen Group and it would continue to monitor the builder.
Robina director Tony Tippett said the builder’s issues would not only affect Robina’s two projects but all other Cullen projects across Queensland and NSW.
“We don’t know what’s gone wrong,” Mr Tippett said.
“We can only assume something has happened on another site.”
He said purchasers of off-the-plan terrace homes and apartments would not be affected, with the Robina Group already assessing options to ensure the completion of its two projects.
“If Cullen Group can’t resolve their issues this will be a hit that will affect Cullen staff, subcontractors and developers across Queensland and northern NSW, including the Robina Group,” Mr Tippett said.
“Unfortunately, we have all been caught by this licence suspension and if the situation is not resolved positively, we are all facing significant losses.
“We all need to work together to determine the best way forward.”
Subcontractors Alliance spokesman Les Williams said the Robina site shutdown illustrated why the State Government should fast forward reforms to ensure subcontractors were paid out of special trust accounts.
“It’s happening far too often. The amendments by the Newman Government in 2014 didn’t assist us at all. The new reforms have a trial period 2018 and will be implemented in 2019,” he said.
“Good on the government for what they are doing but they have to move to bring forward these reforms much quicker.”
WHO IS THE CULLEN GROUP?
THE Cullen Group is regarded as one of the forces in the construction industry in south east Queensland.
The Queensland Building and Construction Commission rates the builder in the category of a $30-$60 million company.
The company has commercial, residential, industrial and retail projects from inner Brisbane to across the border in northern New South Wales.
Its multi-residential portfolio ranges from hotel suites at the Ramada Hotel in Ballina to commercial work at the Tallebudgera recreational facilities.
Photographs on its website show stunning three-level modern apartment complexes at Cabarita.
When the Bulletin visited the Boheme site, one of the company’s largest high rise projects, the Robina project just south of the shopping centre was abandoned except for one loan security guard who was patrolling the area.
One tower is almost completed, another appears to be half done but many of the terraced apartments are a long way from being finished.
A neighbour, who declined to be named, said they had received a letter in the mail saying the site would be shut down for Christmas but was unaware of any problems the builder may have been having.
The company’s owner has not responded to calls from the Gold Coast Bulletin as a seven-day deadline at 5pm tomorrow approaches.
QBCC Commissioner Brett Bassett said the company’s licence was suspended on December 15 because of a “real likelihood of serious financial loss to subcontractors, suppliers and consumers”.
“The period of suspension is dependent upon action taken by the company with respect to the QBCC decision to immediately suspend the licence,” he said.
Documents lodged with ASIC show the Cullen Group still trading but without a licence it cannot operate on any of its sites.
But the builder still has a chance to have their licence reinstated.
“The company would need to provide written representations to the QBCC demonstrating the company meets all licensing requirements, in order to have the suspension lifted,” Mr Bassett said.
Documents show the company has been owed money and was seeking $340,000 for a Brisbane project. It was awarded more than $105,000 in October.
The QBCC said homeowners with concerns about incomplete or defective work performed by Cullen Group Australia Pty Ltd could call its offices on 139 333.
Subcontractors and suppliers who believe they are owed money are being advised to contact the QBCC for more information or seek legal advice.
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