Work has ceased on the site of Seascape, a 183m tall skyscraper on Auckland's Customs St East. Photo: RNZ / Ziming Li
The local arm of the world's largest builder by revenue, China Construction, has told 25 subcontractors it has suspended work on New Zealand's tallest new building, the 56-level $300 million Seascape in downtown Auckland.
Subcontractors involved are understood to include carpenters, plumbers, electricians, steel fabricators and others.
In a blow to those businesses supplying materials and expert labour to the Customs St East tower a block from the waterfront, all work stopped on Wednesday, after a Herald report earlier this month that work was "paused".
Sathy Thurai-rajah, project director for China Construction NZ (CCNZL), wrote to the subcontractors on Thursday, telling them not to return.
"China Construction New Zealand has suspended work under the head contract with Shundi Customs under the provisions of the Construction Contracts Act," he wrote.
"This follows a payment default by Shundi that it has failed to rectify within the required timeframes," he said.
For some weeks, people in the area have complained of little or no progress on the job, worrying about the towering structure which is not closed in or weathertight.
China Construction's payment default claim was put to Shundi Customs where a spokesman disputes that.
He acknowledged discussions about finances and a formal dispute resolution process between the two parties.
"While the adjudication is legally confidential, the outcome did not provide a definitive solution to complete the project and has, in fact, raised complex issues related to project delays and associated huge cost increases.
"Additionally, the principal's concerns regarding the contractor's lack of security and clear commitment to the project have further complicated matters," the Shundi Customs spokesman said.
Site work had significantly slowed, approaching a near pause by China Construction for months prior to the adjudication outcome.
Shundi Customs is now escalating the adjudication outcome through more dispute resolution processes.
"We are also actively exploring all options to ensure the project's completion, including the potential engagement of alternative construction resources if necessary," the Shundi spokesman said.
"Shundi is fully committed to completing the Seascape project. We are confident that through continued dialogue with stakeholders, a positive outcome can be achieved."
Jeff Fahrensohn, council field surveying manager, said on 8 August work had "paused".
He did not know when it would resume or why no one was working there but it wasn't a regulatory issue, he stressed.
Shundi Customs is a subsidiary of Shundi Group, an international development company with headquarters in Shanghai. The business has a portfolio of developments in China and overseas.
Thurai-rajah wrote in his suspension notice to subcontractors: "While it is no secret that the Seascape project has encountered issues over time and is delayed, CCNZL has, at significant cost, ensured that the project has continued to be progressed towards completion."
The builder said it acknowledged and appreciated the hard work of many subcontractors who had moved the project forward and did not want to tell subbies to go.
"CCNZL regrets that it has now been forced into having to take this step of suspending works but it has had no choice given it has not been paid substantial sums due to it. We appreciate that this may be a difficult time for all the subcontractors working on the Seascape project but we hope to resolve the issues as quickly as we can," Thurai-rajah wrote.
He would let subcontractors know when work is likely to resume and sent a contact name at the building business for people to contact.
Work was suspended under the Construction Contracts Act and a subcontract dated 13 January 2020.
Subcontractors told the Herald they were deeply disappointed and concerned by the situation because they were owed money.
Tools were also on the site and the workers needed to return to retrieve those, one said.
The building was designed by Peddlethorp and director Brad Luke in the Auckland office has worked closely on the project for some years.
The arbitration dispute is understood to involve a figure of more than $32m, which China Construction has claimed from Shundi Customs.
The tower has become a dominant yet skeletal feature on the horizon after it reached the top level around June.
The skyline is visible through many of its floors, yet to be enclosed in the tower which is not fully clad.
Several surprised office workers and residents contacted the Herald lately to say they had seen nobody on the site for weeks.
"Our office building overlooks Seascape and it appears construction has stopped," one person wrote this month.
Another inner-city resident close to the tower wrote in May: "The progress on the curtain wall has stalled for many months. The front facade has many windows filled in with temporary sheeting. Is there a problem with the glazing? The completion date was promoted as being during 2024."
Construction sector bosses have also expressed surprise to see slow progress.
At 187m, Seascape is taller than nearby 178m Pacifica apartment tower, which is 57 levels.
Seascape had been expected to open later this year.
But that now appears impossible, given the amount of work to be completed and after China Construction suspended work.
Last June, construction had reached the 41st level. The builders completed another nine floors so that by last September, senior project manager Simon Ma said construction reached level 50.
Two months ago, architects at the Auckland office of Peddlethorp showed images of themselves on a floor towards the top, announcing the topping off.
China Construction is understood to be keen for subbies to return to the project.
But it has given notice of the payment demand and until that remains outstanding, work on New Zealand's tallest new building is likely to remain suspended.
- This article was originally published by the New Zealand Herald