New builder called in to take Shenton Quarter across finish line after BGC walk-out

A new builder has been appointed to finish the job at Iris Residential’s Shenton Quarter development after BGC Construction walked off the site in October.

In a statement on Monday, developer Iris-PW announced it had retaken possession and appointed Gowdie Management Group to complete the nine-storey apartment complex.

The Shenton Quarter development has been hampered by a series of issues.

Iris Residential managing director Simon Trevisan said attempts to engage BGC to get the company to fulfil its contractual obligations had been unsuccessful.

BGC suspended work at the $140 million Shenton Park site on October 30 over what it described as concerns about engineering and the development’s design.

At the time, a spokesman said the decision was not taken lightly and was a result of the company’s commitment to the safety, quality and integrity of its projects. BGC was approached for further comment on Monday morning.

The move, which an Iris spokesman claimed came with “no prior notice”, left buyers in limbo and unsure if they should proceed with their purchase as the complex sat close to completion.

Trevisan said the decision to appoint a new builder had not been taken lightly, and claimed BGC had shown a disregard for its obligations and failed to provide proper staffing at the site.

“We appointed BGC as a Tier 1 builder, and are deeply disappointed with the outcome,” he said.

“In particular, we are acutely aware of the distress and frustration that BGC’s actions and the resulting delays have caused our buyers – and we have taken this decisive action in order to expedite completion of Shenton Quarter to the standard that our buyers are expecting.”

Gowdie, which has previously been appointed to complete the Raine Square tower in Perth’s CBD, was completing an audit of the Shenton Quarter project, including a review of design and engineering reports.

The company was due to begin to engage trades and subcontractors on Monday, aiming to restart work as soon as possible.

Trevisan said Iris would consult with Gowdie to provide buyers with an expected completion time.

Construction started at Shenton Quarter in October 2020, and it had been due to finish in March 2024.

BGC’s walk-out came after the state’s construction union voiced serious concerns about the complex after receiving several reports from members of structural defects earlier this year.

“Some of the apartments [union members] have been working in have massive cracks starting to appear … the concerns have come through when these cracks have continued on,” a CFMEU spokesman said in video posted to the union’s social media in March.

“The apartment that we’ve been told about … which is probably the worst affected apartment here literally has a crack from one side of the apartment to the other side, and that crack is growing on a daily basis.

“I just feel sorry for anyone who has bought an apartment here.”

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