Tomkins stops work at Midwater Main Beach over payment dispute with developer York Property

Work has stopped and subcontractors have collected tools and supplies from the site of an almost-finished $100m high-rise right across from the beach. Read what’s happened

Work has stopped and subcontractors have collected tools and supplies from the site of the $100 million Midwater high-rise development amid a deepening stoush between the builder and developer.

The 39-storey, 119-apartment project is being developed by York Property Holdings, part of the Heran Group, and is under construction by major builder Tomkins Commercial.

Tomkins issued a media statement on Friday, via a public relations company, saying the builder had suspended work the previous day over “a payment dispute”.

“Despite many attempts and good will from Tomkins to resolve the issues, the Heran Group have failed to meet the payment obligations of the contract,” the statement said.

“No builder can afford not be paid, and I am not prepared to continue to carry the costs of this developer.”

Tomkins staff were at the Main Beach site on Monday morning, where subbies were collecting tools and craning out building materials from the gleaming glass-covered highrise, which is just a few floors from topping out.

Builders collecting tools and equipment , being watched by security, and leaving the Midwater building site at Main Beach. Picture Glenn Hampson

Builders collecting tools and equipment , being watched by security, and leaving the Midwater building site at Main Beach . Picture Glenn Hampson

York Property’s Shane Heran said his group had “made all payments certified as payable by the Superintendent” of the project, whose role is to assess builder claims.

Tomkins director Mike Tomkins declined to comment further and his media statement did not mention an application by York Property against his company, which was lodged with the Supreme Court of Brisbane the day before work stopped.

The court file is not yet publicly available.

Mr Heran said the case was a bid to remove Tomkins’ site manager from the project.

A Tomkins spokesman said the company had not been served any papers so could not comment on the case.

Tomkins construction director Mike Tomkins. Pic: Peter Wallis

A QBCC adjudication on August 1 found York Property owed Tomkins $4.01 million of a $14.8 million payment claim.

Mr Heran said the QBCC adjudicator disagreed with Tomkins’ claims York was responsible for delays on the project.

“After receiving this negative result at adjudication Tomkins has taken its most recent suspension action,” he said.

The Tomkins spokesman said as “more QBCC adjudications are to come, Tomkins is not in a position to comment further”.

Mr Heran said sales in the project had been strong.

“Regardless of how the issues with Tomkins are resolved, York won’t compromise on the quality of the units in the development and we expect demand will continue to be strong,” he said.

Heran previously developed the $100 million Coast Broadwater development at Labrador.

Mr Heran said York would continue to “work through the issues with Tomkins with the interests of future unit owners being paramount”.

“York makes no apologies for being unwavering in its insistence on Tomkins producing a high quality outcome for unit owners,” he said.

“Regardless of how the dispute with Tomkins is resolved, York remains committed to ensuring that a project of the highest quality is delivered.”

Tomkins is also defendant in a case brought in July by Brisbane Pre-Cast over its work on the Skye by Pikos Apartment building in Brisbane’s Kangaroo Point.

It is co-defendants with 8 River Tce Pty Ltd, a company linked to its developer Pikos Group.

The case was discontinued against a third defendant, the Commonwealth Bank, on August 27, but remains open.

The Tomkins spokesman said it intended to lodge a counterclaim.

Builders collecting tools and equipment, being watched by security, and leaving the Midwater building site at Main Beach . Picture Glenn Hampson

Tomkins is also being sued by 17 Mile Rocks Road, a company directed by Brisbane businessmen Colin Loel and Mark Smith, in a case brought on May 10.

It has lodged an intention to defend the case.

Tomkins, which is also building the Harbour One tower at Sanctuary Cove, holds a category six licence with the QBCC, permitting maximum annual revenue of $120 million to $240 million.

York had previously planned a 55-storey tower for Midwater, which was approved in 2017, but slashed to 38 floors in 2019, citing “building costs and market demand”.

In 2020 the group was said to be seeking $8 million for the tower’s 600sqm penthouse.

Originally published as Tomkins stops work at Midwater Main Beach over payment dispute with developer York Property