Midwater Main Beach without builder as Tomkins and York Property dispute deepens
Work on a $100 million Gold Coast tower has stopped indefinitely with its builder formally walking off the job and subcontractors let go. Find out more
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Work on the $100 million Midwater Main Beach tower has stopped indefinitely with Tomkins Commercial and Industrial Builders walking off the job and letting subcontractors go.
The 39-storey, 119-apartment project is being developed by York Property Holdings, part of the Heran Group, and has been under construction by major builder Tomkins for more than three years.
Aside from security guards, the site was completely deserted on Wednesday afternoon.
A statement from Tomkins said it had terminated its contract with Heran Group.
“Despite many attempts and goodwill from Tomkins to resolve the issues, the Heran Group has failed to meet their obligations under the contract,” the statement said.
“Tomkins Commercial and Industrial Builders will not be commenting further.”
But a statement from the developer said it did not accept the builder’s termination.
“York’s position is the contract is still active,” it said.
“The superintendent today has directed the contractor to return to work tomorrow morning and York is hopeful that Tomkins will return and continue with construction tomorrow morning.”
Tomkins suspended work at the end of August over a payment dispute, with subbies seen collecting tools and craning out building materials from the gleaming glass-covered high-rise, which is just a few floors from topping out.
The dispute erupted when the developer locked the site’s main access gates with workers inside, sparking a “disturbance” which led to police being called.
York Property filed an application against Tomkins with the Supreme Court of Brisbane the day before work stopped.
The court file is not yet publicly available for the matter, which is scheduled for a directions hearing in Brisbane on Thursday.
Buyers in the project fear the delayed construction could see them lose the beachside apartments they’ve waited years to move into.
Sunset clauses in pre-sale contracts allow either party to terminate if construction has not completed by an agreed date.
Unit prices in Main Beach have swelled by as much as 88 per cent since then, meaning the 119 Midwater apartments are potentially worth an extra $100 million or more if resold at current market value.
New Queensland laws around sunset clauses for the sale of land were introduced in November, requiring written consent from a buyer before a contract can be terminated, or a Supreme Court order.
However, contracts for unsettled apartments can still be terminated by the seller or buyer on the sunset date.
Sunset dates for Midwater contracts signed in early 2021 fall early next year, with the developer declining to reassure buyers that it will not invoke the clauses.
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Originally published as Midwater Main Beach without builder as Tomkins and York Property dispute deepens
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