Bugle Staff Writer
10 October 2024, 9:00 PM
Federal government faces pressure after $60m Quasar Construction collapse impacts major projects.
The Federal government faces mounting pressure after the $60m Quasar Construction collapse which has impacted some major projects. The Revelop Group has also been impacted by the situation, with work stopped at its Calderwood shopping village site in Shellharbour.
Up until September, workers on the $50-million project had been busy, with sub-contractors pouring concrete and starting framework on one of the buildings.
Managing director Anthony El-Hazouri said it is a difficult situation.
"We're still taking stock of it; we're not sure if we are owed anything at this point in time," he said.
"It's always been a very busy site, it has progressed on schedule, on budget, very professionally, we had no real reason to suspect anything untoward."
Mr El-Hazouri said he is confident of restarting work soon, with several new builders expressing interest in the project.
"We are hoping ... in a matter of a couple of weeks we can recommence on site and keep the project going toward its projected completion date," he said.
He said the Revelop Group is also focused on ensuring its subcontractors and site workers are protected.
Executive director of the Master Builders Association of NSW, Brian Seidler, said Quasar was a long-standing builder and had a history of mid-size and large projects.
He said the collapse underscored the broader issues the sector is facing.
"The industry in general is still talking about the problems of lump-sum contracts; that is, contracts with a client will not allow any variation or increasing labour or materials," he said.
He said contractors often have to estimate costs far in advance, which poses challenges for larger projects.
Comment has been sought from Quasar.