PACT and Iris clash over Jolimont build

PACT Construction and apartment developer Iris Residential are locked in a dispute over payments relating to a $55 million Jolimont project.

Iris Residential engaged ABN Group subsidiary PACT to build 46-dwelling development One Mabel Park in August 2020, and the building reached practical completion in February 2022.

PACT says the developer still owes it money for works executed during construction.

Neither party would divulge the amount in dispute, but Business News understands it is close to $1 million.

Iris Residential managing director Simon Trevisan acknowledged there was a dispute between the parties about the final certificate, but said there were no outstanding payments owed to PACT.

Iris Residential’s directors registered Iris Mabel Park Pty Ltd on the Australian Securities and Investment Commission in May 2018 and deregistered it on November 14 this year.

PACT general manager Jason Thomson said the contract with Iris Mabel Park Pty Ltd was still active at the time that company was deregistered and that Iris commenced the deregistration process before the builder’s final certificate was issued.

Mr Trevisan said the project superintendent issued a final certificate in September, when supporting bank guarantees were returned to PACT.

“The defects liability period on One Mabel Park finished in September 2023,” he said.

“Iris then began the process with the Australian Securities and Investment Commission of deregistering the project vehicle, Iris Mabel Park Pty Ltd. PACT subsequently stated it believed the final certificate had not been issued correctly, and it was reissued.

“At this time, PACT put forward a new final claim. This was assessed by the project superintendent, who issued Iris with a final certified amount to be paid – which was promptly settled.”

PACT confirmed it was seeking legal advice over Iris’ response to its claim.

Collapsed Pindan was initially appointed to build One Mabel Park, but PACT took over in late 2020.