Subbies hit by Ware Building collapse eye Gold Coast Commonwealth Games Village contract head Grocon
FUMING subbies working at the Commonwealth Games athletes village claim they are owed hundreds of thousands after a construction company collapse.
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FUMING subbies working at the Commonwealth Games athletes village claim they are owed hundreds of thousands after a construction company collapse.
The subcontractors have the Parklands village head developer Grocon in their sights after it revealed this week Ware Building Pty Ltd went into voluntary administration.
A Grocon statement said Ware — overseeing construction of 82 townhouses for athletes — had advised it had paid all debts but four companies contacted the Bulletin yesterday claiming they were out of pocket for five- and six-figure unpaid invoices.
They include:
— Westwood Workshop, owed $90,000 for kitchen and bathroom cabinetry and woodwork;
— A1 Interior Linings, owed $200,000;
— Vision electrical firm, owed up to $150,000 in combined invoices;
— Danlaid Contracting, out of pocket $45,000 for waterproofing work;
Westwood office manager Nicole Goodwin said her firm walked off the job recently, claiming Ware Building stopping payments and they were owed invoices from two months ago.
“Grocon have washed their hands of it — they are saying Ware have paid everyone but they have not,” she said.
A1 owner Peter Guild said a group of frustrated subcontractors aimed to front Grocon next week.
Vision Gold Coast based estimator Brad Hunt said: “It’s a government building site, there should not be any worries from a government project when getting paid.”
A spokesman for Games Minister Kate Jones said Grocon held a banking guarantee it could draw down on to pay subcontractors for “exactly this purpose”.
“We want all subcontractors paid on time. Any subcontractors with concerns about outstanding payment should contract Grocon,” the spokesman said.
Shaw Gidley director Scott Newton, appointed liquidator for Ware Building yesterday, said there were outstanding claims by Ware against Grocon for $1 million plus $1m in retention payments held by Grocon.
Mr Newton said while Grocon were within their right to hang onto retention payments — for extra work required upon completion — ideally the contract would have been completed and $1m released to Ware.
He also understood Grocon had levelled a claim against Ware Building for $2.5-7 million. A Ware company source told the Gold Coast Bulletin it was believed to relate to timeliness of delivery but blamed Grocon for holding Ware up.
Mr Newton said there were “substantial” creditors and any return was reliant on recovery of claims and retentions.
Grocon declined to comment on the accusation it had hit Ware with a $2.5m claim.
In a statement, Grocon said it was working through contractual processes “as quickly as possible after having been notified that Ware Building will be entering voluntary administration”.
“Grocon is currently liaising with relevant parties including with Ware Building’s subcontractors as a high priority.”
Devastated Ware Building founder Mark Ware said Grocon “have a lot to answer for” and subcontractors owed money should approach them.
“I started (Ware) 40 years ago. I’m fuming. I spent a lifetime building it and we’ve lost millions.”
Grocon has said the Ware collapse will not affect delivery of the townhouses, largely completed except for landscaping and rectifications.
SUBBIES DEBT CLAIMS
Westwood Workshop, $90,000
A1 Interior Linings, $200,000
Vision electrical, $150,000
Danlaid Contracting, $45,000
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