GCB Constructions contracts terminated on six projects as director Trent Clark seeks DOCA

Construction contracts for six major development projects – including two hospitals – have been terminated, as administrators look for ways to salvage a flailing Gold Coast building company.

Construction contracts for six major development projects – including two hospitals – have been terminated, as administrators of GCB Constructions look for ways to salvage the flailing Gold Coast builder.

Receivers were appointed to the entire Clark Group, including GCB and other companies linked to managing director Trent Clark and his father Greg, who founded it more than 30 years ago.

GCB went into administration on July 27, a day after its Queensland builder licence was suspended for failure to pay debts.

GCB Construction site operating on small staff numbers at 309 Golden Four Drive Tugun on the Gold Coast. Picture: Glenn Hampson

The company had been embroiled in multiple court cases, including two with key developers, from which GCB claims it is owed more than $14m.

Sole director Trent Clark had earlier said he was “determined and confident” of overcoming financial struggles which saw work slow to a trickle or completely stop at sites along the east coast since May 8.

Administrator David Stimpson, of SV Partners said Mr Clark planned to propose a deed of company arrangement (DOCA) in an effort to avoid the company going into liquidation.

In an update to subcontractors, Mr Stimpson said the DOCA would aim to transfer non-terminated projects to a new builder; obtain third-party funds, sell company assets and collect any outstanding payments owed to GCB.

Trent Clark, managing director of GCB Constructions.

An artist impression of Si Bilinga.

Mr Clark also hopes to use the DOCA to gather funding to pursue the two legal actions.

Developers have stepped in to take over sites at Kangaroo Point, where GCB was contracted on Aria Property Group’s Canopy House; the Si apartment tower at Bilinga; and Rayjon’s Vantage View at Benowa and Vantage Burleigh near Varsity Lakes.

Contracts have also been terminated for Ramsay Health’s Sunshine Coast University Private Hospital and Caboolture Private Hospital, which were both undergoing major expansion projects, leaving them without builders.

Caboolture Private Hospital generic

Mr Stimpson told subcontractors who had belongings at any of the terminated sites to contact the developers.

As far as administrators were aware, contracts had not been terminated for Marine Quarter Southport; Cote Palm Beach; Wategos, Byron Bay; 35 Garden St Southport; or Tallebudgera SLSC.

Any subcontractors seeking to obtain belongings from these sites should contact Sarah Brown at Slattery Auctioneers.

“We are continuing to investigate the company’s affairs, including an analysis of the reasons for the company’s failure, insolvent trading and voidable transaction investigations,’ Mr Stimpson told subcontractors.

Secured creditor Pyramid Capital appointed receivers Stephen Earel and Darryl Kirk of Cor Cordis to the group on July 28, but they resigned after less than a week.

Cor Cordis declined to answer questions about the receivership.

A second meeting of creditors is scheduled for August 30.

Originally published as GCB Constructions contracts terminated on six projects as director Trent Clark seeks DOCA