Grocon guarantees out of pocket subcontractors will be paid by next Thursday
UPDATE: DEVELOPER Grocon has guaranteed it will pay all out-of-pocket subcontractors working on the Commonwealth Games Athletes Village by next Thursday.
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UPDATE: DEVELOPER Grocon has guaranteed it will pay all out-of-pocket subcontractors working on the Commonwealth Games Athletes Village by next Thursday.
In a meeting held earlier today, Grocon told the subcontractors left out of pocket by the collapse of Ware Building, payments would start next week.
Subbies had threatened to remain off the job until every contractor was paid but have now agreed to go back to work on Monday.
A1 Interiors owner Peter Guild, who is owed $300,000, said the subbies breathed a sigh of relief after they were told they would be paid.
“It’s all good,” he said.
“Some other businesses had young families and it means they will be able to continue to support them.”
It is understood the subbies must have their unpaid invoices to Grocon by Monday to ensure they are repaid.
EARLIER: DEVELOPER Grocon has given the State Government assurances all legitimately out-of-pocket subbies will be paid for their work on the Commonwealth Games Village.
The developer will meet with the subcontractors on-site at midday today to discuss their claims.
Commonwealth Games Minister Kate Jones demanded to meet with Grocon after it emerged at least 13 people were owed between $18,000 and $200,000 each.
It is understood that at the meeting yesterday, Grocon promised all subbies who could produce invoices and prove they had not been paid would be reimbursed.
Grocon CEO Craig Mitchell said they had been working behind the scenes to find out who the impacted subbies were and what they were owed.
“Now we are in a position to understand their claims we look forward to a constructive discussion tomorrow,” he said.
The debacle began when contractor Ware went into administration last week, leaving a trail of debts with subcontractors.
Ms Jones said the meeting was a step in the right direction.
“We want to do the right thing by these subbies,” she said.
The Minister said earlier in the week she was angry and frustrated by Grocon’s handling of the situation.
She said after the meeting she was confident the developer would work with the subcontractors.
State Development Minister Anthony Lynham said the department would attend a liquidator’s meeting next week and would be able to fully brief any subbies who could not make the meeting.
“As I have already committed, we will continue to support all subbies through this process,” Dr Lynham said.
“Where they’ve got legitimate claims for payment they should be paid.”
The past few days have proven frustrating for subcontractors left in the dark.
At 4pm yesterday, subbies were still unaware a meeting with Grocon was going to take place.
“I haven’t been told anything at this stage,” EGI Tile Contractors owner Emanuel Ibrahim said.
“I haven’t heard much.”
Mr Ibrahim said he was owed about $70,000 for the work he had completed.
“Even some of it would be nice,” he said.
Austwide Concrete owner Dale Martin said he was also in the dark.
“I haven’t heard anything and I don’t know what to believe,” he said.
Mr Martin said he was a part of a teleconference with the Department of Housing earlier in the week and had been assured he would be paid.
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