New builder assigned to Shenton Quarter

Queensland project manager Gowdie Management Group is set to complete the $140 million Shenton Quarter development, following BGC’s suspension of work at the Shenton Park project.

Developer Iris-PW has this morning retaken possession of the site and announced that it would appoint Gowdie Management Group to take over the project, which is 95 per cent complete.

The action comes after BGC Australia announced it would down tools at the 157-dwelling development, amid a “commercial dispute with the developer regarding engineering and design”.

Iris Residential managing director Simon Trevisan, speaking on behalf of joint venture Iris-PW, said attempts to engage with BGC to return to site and fulfilling its contractual obligations since that time were unsuccessful.

“We have consistently sought the best outcome for our buyers and for this project,” he said.

“BGC has shown a disregard for its obligations to construct Shenton Quarter. Over the past 18 months it has consistently failed to provide proper staffing at the site to progress it towards completion, and Iris-PW lost faith that it would do so.

“We appointed BGC as a tier one builder, and are deeply disappointed with the outcome."

The project manager, which is expected to appoint subcontractors to the job in the same way a tier one builder would, has a history of completing troubled developments.

In 2012, Gowdie took on the $550 million Raine Square development when its owners went into receivership.

Shenton Quarter has been subject to multiple delays, with initial completion flagged for mid-2022.

The inside of an apartment in Shenton Quarter. Photo: Iris-PW

The Construction, Forestry, Maritime, Mining and Energy Union expressed concerns about the structural integrity of the building earlier this year.

A spokesman for BGC Australia said the builder remained concerned about "the engineering and structural adequacy of the design at Shenton Quarter".

"Despite two independent engineering reports highlighting these deficiencies and the necessary rectification requirements, these issues remain unresolved to BGC’s satisfaction," the spokesman said. 

"BGC’s request for engineering data and subsequent discussion between the parties’ engineering experts to resolve these matters was repeatedly dismissed.

"Although BGC is no longer involved with the project, it remains concerned that the safety issues raised will need to be addressed in order to ensure the safety of occupants of the building." 

The spokesperson added that the company had a long history of safely delivering quality construction projects across Western Australia and would not continue to construct a building with known deficiencies. 

Last week, at least 15 buyers signalled their intention to pull out of their contracts, as Australian Apartment Advocacy threatened a potential class action.

Mr Trevisan said Iris-PW was “acutely aware of the distress and frustration that BGC’s actions and the resulting delays have caused our buyers”.

“We have taken this decisive action in order to expedite completion of Shenton Quarter to the standard that our buyers are expecting,” he said.

Iris-PW said it would consult with Gowdie Management Group to provide buyers with an update on expected completion for the project as soon as possible.