More court drama for Coast builder

A MAJOR Gold Coast builder, already in court with the developer of twin towers at Southport, is battling a second developer after walking off the site of a $196 million project in Brisbane.

GCB Constructions is seeking more than $10m from a subsidiary of China-owned Poly Global, with which it was developing the 243-unit Ascot Aurora residential estate, court records reveal.

The boutique development, near Doomben racecourse was to incorporate 208 townhouses, 11 freestanding homes and 11 apartments and was initially due for completion by June last year.

In Supreme Court documents, GCB claims work on the Ascot project was delayed after the developer obtained an updated development approval, which the builder said was outside the terms of the capped-price contract.

Lawyers for GCB wrote that the new development approval represented a “radical and fundamental change” from the contract and would substantially increase the project’s cost.

While the original DA had 112 conditions, the new one had 467, the lawyers said, adding it would be “illegal” and “impossible” for GCB to undertake the newly-approved works.

GCB’s lawyers said as the main works contract had been “frustrated”, it was effectively terminated. They requested Poly group pay $9.9m for materials, work completed and other costs.

GCB had contracts to complete the project’s early and main works, ceasing main works on November 16.

In response, lawyers for the developer disputed termination of the contract, which they said had provisions for costs and delays that GCB had already relied upon when sending notices of variation and extensions of time.

They said their client could “form the view” GCB was claiming the contract had been frustrated in order to avoid its obligations under the contract.

Accordingly, the developer intended to issue show cause notices, under the early and main works contracts, for GCB’s “refusal to carry out the work” and its “abandonment of the site”.

The developer said it would block access if the builder attempted to enter the site to retrieve its sheds and scaffolding.

GCB argued there was no basis to show cause under the early works contract, on which work was still ongoing, and that Poly would be breaching that contract if access was denied.

It said the allegation it had abandoned the site was “baseless” as it had supervisors and subcontractors working there that day.

Poly issued a show cause notice on November 18 and, 12 days later, gave notice it intended to claim the $2.4m in security held for the project due to GCB’s “material breaches” of contract.

The case is next due for review on July 13.

The case comes as GCB Constructions is pursued in the Supreme Court by company Marine Quarter Southport, developing the $72m twin-tower project of the same name.

While work is well under way on the first stage of the 265-apartment development, next to the Broadwater Tourist Park, the companies are at a stalemate over when the second stage should commence.

GCB is also working on GDI Group’s 30-floor Drift Residences at Main Beach and Rayjon Group’s $45m Vantage Burleigh.