The claim was an absolute last resort, more than three years after the builder was forced to cease work on the building due to non-payment, he said.
The Quattro Apartments on Great North Rd, Grey Lynn.
“We would have much preferred to settle this matter privately and we believe it would have been in the best interests of all parties to do so,” Birchall said.
But Dragicevich said apartment owners disagreed with Teak’s characterisation of disputes.
“A number of disputes have arisen out of Teak Construction Group’s remediation work,” Dragicevich said.
“These include significant claims by the body corporate against Teak in respect of defective construction work and delays,” he said.
“Despite numerous genuine efforts by the body corporate to resolve matters, Teak has refused to engage on any meaningful basis.”
Birchall said Teak had made repeated attempts to engage with the body corporate executive, including multiple offers to resolve the dispute through mediation and arbitration.
“We have been unable to achieve meaningful progress. Unfortunately, we now have no option but to proceed with legal action,” he said.
Birchall said Teak was upset for the owners of the apartments because it had had personal contact with some over the years.
“But we are trying to run a successful business and that means we must be paid what we are owed.”
In early 2019, Teak was contracted to do significant remedial work due to weather-related damage.
Back when Teak was working on Quattro Apartments on Great North Rd, Grey Lynn. Photo / Teak Construction Group
The weather-tightness issues arose from work by another contractor. Teak was only contracted to build, not design the remedial works, Birchall said.
As the works progressed, the extent of the weather-tightness damage and defects became clear, meaning the cost of the repairs escalated and disputes over the costs for those works arose in late 2021.
“A settlement agreement was reached as a result of mediation between Teak and the body corporate in April 2022, allowing work to progress,” Birchall said.
But after the body corporate withheld contractually agreed progress payments, the contract was suspended in September 2022.
That forced Teak to terminate the contract and leave the site.
“We have been attempting to settle this matter in good faith ever since but have been unable to do so.”
Teak would be seeking a declaratory judgment that it is owed a multimillion-dollar sum by the body corporate, he said.
“We acknowledge that the body corporate has made claims that it is owed money by Teak in liquidated damages and alleged incomplete repair works,” Birchall said.
“While we do not accept that the amounts claimed are valid, we would welcome the opportunity to settle this, as we have been trying to do for the past three years.”
Teak still carries the Quattro job on its website, saying it was commissioned to remedy the issue by completing a full reclad.
It was also fixing internal problems with the building’s passive fire protection by removing inter-tenancy walls and associated bathrooms.
It put the value of the job at $29m.
Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.
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