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Gold Coast builder GCB Constructions has gone into administration today after more than 40 years developing projects in the region, including several that are still under construction such as residential developments Vantage Burleigh, Vantage View in Benowa, and the Marine Quarter twin-tower project at Southport.
David Stimpson and Adam Kersey from SV Partners were appointed administrators of the group just one day after its Queensland Building and Construction Commission (QBCC) licence was suspended.
"The appointment occurred primarily due to disputes relating to two major construction projects on the Gold Coast," the administrators said in a statement, although they did not specify which specific projects.
"The company’s QBCC licence has been suspended and with that, all works have ceased. We will be working with the developers to transition projects to new builders, consciously minimising any loss to subcontractors."
The administrators are now enquiring into the GCB's financial position, including the potential completion of any contracts by a third party.
In May, the builder's Amaya project in Broadbeach was taken over by Canberra-based Amalgamated Property Group, and at the time GCB Constructions managing director Trent Clark emphasised the company was a "long-term, viable business, with a solid history of performance in the local construction industry".
Clark has been approached for comment, but has not responded prior to publication.
Administrators note the company is exploring the prospect of putting a proposal for a Deed of Company Arrangement (DOCA) to creditors, and expect to issue a report to creditors this Friday, to be followed by a meeting of creditors on 7 August.
"The administrators will conduct an investigation into the affairs of the Company and will be reporting to creditors on the outcome of those investigations as soon as possible," Stimpson and Kersey said.
In addition to the $200 million Vantage project at Benowa and the $180 million Marine Quarter project, other developments at the group include Steer Developments’ $51 million Côte Palm Beach, GDI Group’s Drift Main Beach.
Early signs of trouble emerged at Marine Quarter earlier this year after the project developer took Supreme Court action against GCB in a dispute over the timing of a start to construction of the second stage of the project.
Completed projects the group lists on its website include stage 3 of 'Habitat' Pocket Living in Byron Bay, the outlandish and futuristic Point Danger residence Tweed Terrace, Swell apartments in Coolangatta, Stanhill Drive in Chevron Island, and other developments in retail and hospitality, industrial property, education and childcare, health and aged care, and government and community sectors.
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