exclusive
Does the completion of Shenton Quarter mark the end of a troubled history or the start of a new one?

Some 140 buyers at Shenton Quarter are preparing to finally move into their new apartments in about two months’ time, almost four years after construction commenced. And depending on who you speak to, the final countdown is being felt with great excitement or extreme trepidation, because the long road to this point has been tumultuous to say the least, strewn with controversy and drama, most notably when the original builder BGC abandoned the job on October 30 last year. When BGC took that drastic step it cited “engineering and design” flaws that followed earlier claims by the construction union that there were structural problems with the $140 million nine-storey urban village in Shenton Park. Despite the insistence of the developer Iris-PW that all defects were fixed by the new builder, Gowdie Management Group, a number of buyers remain extremely anxious. “Our biggest concern, based on insider information, is that the podium level may not be able to sustain the 1000 tonnes anticipated with landscaping and filling the (swimming) pool and hence the communal amenities may simply not be completed,” said Samantha Reece of Australian Apartment Advocacy. Ms Reece has been a strident voice for the group, which Iris-PW claimed represented a small minority of buyers. “The overwhelming majority of buyers at the project are very pleased with the recent construction progress and regular and detailed information updates provided, and are looking forward to moving into their new homes,” it said on Friday. The developer also insisted the swimming pool and other common area amenities would all be delivered, as promised. “It is a requirement of the development approval for the project that all common area amenities for Shenton Quarter are delivered as advertised, and they will be. This is not in question,” a spokesperson said on Friday. According to the latest information bulletin from the developer on Thursday, bookings for pre-settlement inspections in the mezzanine level are commencing this week. “At present we have 35 apartments to progress inspections over the coming weeks as common area corridor spaces complete to levels suitable for buyers to move through as part of the inspection process,” it said. Buyers will be expected to settle and pay the balance for their apartments within two weeks of strata titles being issued. Iris-PW said it expected this to happen around late August. James Jarman bought a two-bedroom apartment for himself and his nine-year-son Henry. Even though he’s a fairly recent buyer, he said the experience had been incredibly stressful. “I put the deposit down about February or March last year, and at that stage, the building was externally complete. They told me it will be finished in three months,” he said. “It was only a couple of weeks after I bought that the first story came out about the big cracks (in the concrete). “I know some people want to get out of their contracts. I’m not one of them. I just want to have a safe apartment that’s structurally sound, and get what I paid for. “It’s such a big purchase and you just worry about it the whole time,” said Mr Jarman, who is paying $690,000 for his apartment in the desirable western suburb. One of Mr Jarman’s concerns was settling on the purchase before the common areas were completed. He also wanted reassurance around who would fix any structural issues down the track, should they emerge. In another recent information bulletin issued by the developer, it said: “BGC remain accountable for the works they completed up until Gowdie took over. “Gowdie completed a detailed report to document the status of the BGC work just prior to them taking over. Gowdie are completing a range of repairs to various things on site where BGC workmanship and construction approach was not in line with the appropriate standards. “The certifying structural engineer is expected to shortly be providing a letter confirming its satisfaction with the repair works undertaken by Gowdie, repairing the BGC structural construction problems. “BGC is accountable to the six-year structural warranty for the works it completed. Gowdie is accountable for the six year structural warranty for the works it completed, inclusive of the works it repaired due to BGC structural construction problems,” it added. Given BGC has apportioned blame on alleged design and engineering flaws, Mr Jarman said he and other buyers envisage responsibility for problems down the track will be disputed. “We totally believe it will be a situation where each of them will blame each other and nothing will get fixed,” he said. Hospitality executive Sharon Foster aired the same fear. She signed a contract for a one-bedroom townhouse in the complex as an investment property. “We don’t have anything in writing to say who’s responsible for what and BGC have already indicated by boycotting the site, that they’re not willing to take responsibility in any way, citing that the issues are due to engineering flaws,” she said. “So if there are reported defects within that six-year period. I can’t see BGC actually saying, ‘yeah, sure, we’ll fix that’. They are going to say, ‘we told you that the engineering plans were flawed’.” Mr Jarman and Ms Foster are also concerned that City of Nedlands, as the relevant permit authority, will issue a certifcate of occupancy for the building based on a review of information provided by the developer-appointed building surveyor, rather than conducting its own physical inspections. Apartment buyer Bethany Evans conveyed the same worry in a letter to Commerce Minister Sue Ellery, who has been keeping tabs on the whole affair. Ms Evans told the Minister she and nine other buyers had met with the planning manager at the City of Nedlands on June 5. “The City have not been on-site and have not conducted any type of formal inspection,” she wrote. “The government surely has an obligation to ensure that buyers are protected and have reassurance that the building is structurally sound and completed as per the commitments provided by Iris PW at time of purchase,” Ms Evans added. The Minister responded to The Sunday Times questions on Friday, stating that the Building Commissioner had visited the site and was paying close attention to the project. “The Building Commissioner has been regularly visiting the site, including a two-hour period last week where various elements of new and remaining building works were viewed,” she said. “While it is acknowledged the build is taking longer than expected, (the regulator) Building and Energy has been focused on ensuring due diligence is being followed throughout the building and certification process, especially in regard to the rectification work previously identified. “The Commissioner is regularly briefing me, and his most recent advice is that the new builder is taking a very proactive approach to identifying and rectifying defects. “Building and Energy will be conducting an audit of the certification documentation that is submitted for the occupancy permit and has been liaising with the appointed private building surveyor and permit authority on this matter.” Ms Reece remained apprehensive about buyers settling before the building was completely finished. “It is unprecedented within WA for buyers to be expected to settle on their apartments, while the amenities are still being completed,” she said. “There is no mechanism to force the developer to complete the communal facilities, especially once the apartments are settled. “We are calling on Minister Ellery to intervene and either prevent release of titles or ensure a substantial bond is provided by the developer to cover any shortfalls, in what has been promised and then what is actually delivered.” Iris PW said it wasn’t unusual or unprecedented, as Ms Reece claimed. “In the residential apartment sector, if certification requirements for a building have been met, then buyers are expected to settle,” a spokesperson said. “That said, there are not expected to be any substantial amenities works ongoing around the time of settlement at Shenton Quarter.” The developer has previously said there will be trades doing tidy up work and attending to minor defects for a few weeks post settlement. Iris-PW said it welcomed the interest the regulator was taking in the project and would continue to co-operate with Building and Energy. Ms Foster said she wouldn’t have bought her $535,000 unit if she knew it was going to take so long, let alone all the other dramas. “I signed in March 2022 and at the time I was told that it would be settled by August of that year,” she said. “I sold a business two years ago and I essentially used that money. I wouldn’t have held that money up if I’d known (it was going to take so long.) “For me, it’s a financial impact. My life has essentially been put on hold.” She said the wait had been worse for others, with family members forced to live apart and some people couch-surfing. “The (developer’s) conduct has been questionable at best, so a lot of us are thinking worst-case scenario, but I also don’t think that is unjustified given the integrity around the treatment of buyers so far,” she said. “Everything has just been on hold for so many people, you can’t book holidays, you can’t invest your money anywhere else, because you just don’t know. “Interest rates have risen, my mortgage at the moment is going to be $1300 per month more than it would have been two years ago, if I had fixed. I had lost rental income in that time. And there’s just a lack of acknowledgement of any of that.” Ms Foster was among several buyers who sent a legal letter in April demanding they be released from their contracts over delays, which was rejected. “Since that time, Iris has refused to communicate directly with any of the buyers that issued the letter of demand,” she said. “So if we call them or email them or ask for information, they won’t talk to us unless it is through their lawyer, even though we never pursued legal action. That’s the treatment that we’re getting.” Iris-PW denied the allegation. The Sunday Times asked BGC if it would attend to any structural problems in the future. “We are in the process of validating the termination of the contract, which will ultimately dictate responsibility for the structural warranties,” a spokesperson said. Iris-PW blamed delays on BGC. “We understand and share the frustrations experienced by buyers as a result of the actions of the original builder at Shenton Quarter, and have spoken about this both publicly and directly to buyers over many months — and have continued to work to deliver the project as soon as possible,” a spokesperson said.

The West Australian exclusiveDoes the completion of Shenton Quarter mark the end of a troubled history or the start of a new one?

exclusive
Does the completion of Shenton Quarter mark the end of a troubled history or the start of a new one?