Grocon still not paying its bills

GROCON has told subcontractors on the Commonwealth Games Athletes Village they will be paid before Christmas what they’re owed for their work – six weeks after the payments were due.

The company surrendered its Queensland building licence after it was suspended by the Queensland Building and Construction Commission last month because they could not meet financial requirements.

The regulator has washed its hands of the issue, saying the company – based in Melbourne – is no longer in their jurisdiction.

Commonwealth Games Minister Kate Jones said she had contacted Victorian Planning Minister Richard Wynne to see if that government could help.

Subcontractors owed close to $1 million each have been asked to sign novation agreements that transfer their contracts from Grocon’s Queensland arm to their Melbourne HQ, but Grocon representatives have not signed and returned them to all subbies.

They instead received a letter from Grocon on Wednesday confirming the company had incurred “substantial financial losses relating to the Parklands project”.

It said subcontractors would be paid “on or before December 15” for work completed in September.

Payments due next week for October work will “aim to” be paid a month late on December 22, but no date was given for when work completed in November would be honoured.

One subcontractor owed more than $60,000 fears Grocon has set payment dates after the State election to reduce the pressure on the Government to step in.

The business owner, who also lost money in the collapse of Government-contracted Batir Constructions, said the dates coincided with the industry’s Christmas shutdown. “They speak to you like they’re doing you a favour – but that’s our money. We’ve paid all our installers and suppliers – the Government has let them leave the state.”

Ms Jones said the Government was investigating what else it could do to help.

“We are already paying some subcontractors directly, rather than Grocon, on the Government-funded works. Subcontractor payments for the private development remain Grocon’s responsibility, but I’m doing everything in my power to hold Grocon to account.”

Grocon said the timing of payments was “only related to the availability of funds and subcontractors do not need to fear further delays”.