Grocon to pay subbies next week
DEVELOPER Grocon will pay all out-of-pocket subcontractors working on the Commonwealth Games Athletes Village by Thursday.
The construction giant made the commitment yesterday at an on-site meeting with about 30 subbies left in the lurch when contractor Ware Building collapsed last week.
The guarantee means work will restart on site on Monday after subcontractors downed tools until they were paid.
The guarantee has subcontractors such as A1 Interiors owner Peter Guild breathing a sigh of relief. Mr Guild is owed about $300,000 for work already completed on the village. “It’s all good,” he said. “Some other businesses had young families and it means they will be able to continue to support them.”
He said while his business was able to survive, not being paid could have devastated smaller businesses on site.
“The smaller guys may not have been able to survive,” he said.
The pay guarantee comes after Commonwealth Games Minister Kate Jones and State Development Minister Anthony Lynham hauled Grocon into a crisis meeting on Thursday to ensure the subbies were paid and that work on the Games Village continued.
Some subbies were still cautious about the news.
TGI Tile Contractors owner Emanuel Ibrahim said he was waiting for the offer to be put in writing.
“They are going to sit down and give us a chance,” he said.
Mr Ibrahim said he was concerned only contracted work would be paid. He said he completed an extra $45,000 in work as part of variations Ware made to his contract.
“I really hope I get paid the variations,” he said.
Grocon said yesterday invoices received by Monday would be paid within the week.