Twin peaks of dispute over development to go to trial
A DISPUTE between a major Gold Coast builder and the developer of its $97m twin-tower project is set to go to trial.
GCB Constructions is being sued by the developer of its largest project, which court documents said had “run into major problems”.
The builder is being pursued by company Marine Quarter Southport, which is developing the mammoth project of the same name.
The companies are at a stalemate over when the second stage of the development, next to the Broadwater Tourist Park, should commence.
The case has been set for a civil trial in the Brisbane Supreme Court from April 3-11.
A case review is also scheduled for March 17.
Court documents said construction of stage 1 was due for completion in May this year. While the builder said there was an agreement to complete the project sequentially, the developer said it had full discretion over when building should start and wanted it to commence by last June.
Court documents said the developer had obtained finance for stage 2 that had to be repaid by March 2024 and had entered into 44 contracts of sale for the second stage, with an anticipated completion date of December 2024.
GCB’s submissions to the court have said the “complex construction project” had “run into major problems”. It said the request by Marine Quarter to commence stage 2 while stage 1 was still under way “creates enormous practical and logistical difficulties” due to site constraints.
Court documents have revealed the project was initially split into two stages, with a lump sum of $43.5m to be paid for stage 1 and $52m to be paid for stage 2.
A variation to the contract was later agreed, reducing the lump sum for the first stage to $41.5m.
As well as disputing the agreed start time for stage 2, the parties also disagree on the lump sum payment for the second build, which court documents suggest would be more than $55m.
GCB is also working on GDI Group’s 30-floor Drift Residences at Main Beach and Rayjon Group’s $45m Vantage Burleigh.