Cracks found before rivulet collapse

CRACKS started appearing in the floors of shops in the Cat and Fiddle Arcade above the Hobart Rivulet three weeks before the collapse of the structure, a State Government audit has found.

DISASTER: The Myer construction site collapse on July 27.

CRACKS started appearing in the floors of shops in the Cat and Fiddle Arcade above the Hobart Rivulet three weeks before the collapse of the structure, a State Government audit has found.

The audit was commissioned after asbestos was found among the rubble of collapsed shops and tenancies that fell into the Hobart Rivulet in the early hours of July 27.

The rivulet consequently flooded the construction site of stage two of Kalis Group’s Icon Complex development and the basement level of the new Myer building in Liverpool St, forcing the closure of the city’s busiest shopping arcade. It took four weeks before Myer reopened. Insurance claims have been estimated at between $30 million and $40 million.

The State Government last night released a statement saying the audit had found parties in the Myer redevelopment project knew that “not insignificant damage” had occurred to shops in Cat and Fiddle complex 22 days before the Hobart Rivulet wall collapsed.

The audit was limited to a review of documentation associated with the legislative process for protection work — it did not provide an explanation or analysis of the rivulet collapse or look at the causes of the collapse.

The statement said at least one unspecified party also failed to follow the “protection-work” process, as outlined in the Building Act 2000.

The Act requires property owners/developers to seek the agreement of adjacent owners regarding measures to protect the adjoining property during construction.

It said the Director of Building Control, Dale Webster, would consider what further action was required, as provided for in the Act.

Mr Webster foundin his report that, based on the documentary evidence, Emmanuel Kalis’ development company did not comply with sections 12, 121, 127 and 130 of the Building Regulations Act.

The developer did this by starting protection work 22 days before filling out the necessary paperwork required by the Act and he did not notify Cat and Fiddle owner, Silverleaf Investments founder, Gerard O’Brienthat work had begun or what method was used.

Mr Webster also found that Silverleaf Investments Pty Ltd, Gandy and Roberts Consulting Engineers, Architects Designhaus, PDA 12 Surveyors and Hutchinson Builders were aware of “not insignificant damage” to tenancies in the Cat and Fiddle buildings 22 days before structural failure of the same buildings.

Mr Webster said the paperwork sent to Mr O’Brien and signed by Mr Kalis was sent 22 days after the protection work had startedand did not detail what type of underpinning was used for that protection work, as required under the Act.

“This document was signed by Mr Emmanuel Kalis on June 21 ... and work pertaining to this notice had commenced on May 31,’’ Mr Webster said in his findings.

“Kalis should have sought agreement from Silverleaf,” Mr Webster told the Mercury.

When a draft of the audit was released last month, Mr O’Brien said he had been “extremely disappointed” to find out that there should have been an agreement between himself and Kalis Group over the protection work.

“The proposed program for undertaking protection works for our building and the rivulet had never been provided to us or agreed by us,” he said.

The audit indicates that the July 27 collapse was preceded by an email chain that showed that cracks were appearing in the Cat and Fiddle complex.

According to the emails analysed by Mr Webster, damage began to appear in shops, with photographs of cracks in floors of shops that later collapsed into the rivulet and doors that would not shut because of movement in the building.

On July 14, Mr OBrien expressed his concerns about the damage to his heritage building in another email.

He said he “completely” trusted the judgment of the surveyor who agreed to “immediately regrout the cracks in Dotti and Portman and fix the doors that are jamming”.

In his concluding remarks, Mr Webster said such paperwork was not uncommon.

“I accept that the certification and permit process followed is not atypical and, as such, I do not make a finding adverse to any party in respect to the building certification and approval process,” he said.

“However, this audit has highlighted the need for my office to ensure greater clarity and control in respect of the documentation and certification of protection work.”

Building and Construction Minister Guy Barnett said the Government was considering further action.

Hobart City Council general manager Nick Heath said the audit report made no findings about the council’s actions.

“The council will continue to co-operate with all parties to ensure the reconstruction of the damaged section of the rivulet wall, to ensure that the Cat and Fiddle Arcade returns to normal operations and to ensure the site gets back to normal construction operations,” Mr Heath said.

Hutchinson Builders said it had yet to receive the report which had been mailed from Hobart on Friday.

Kalis Property was contacted for comment.

Originally published as Cracks found before rivulet collapse