'weak' Concrete May Cost Boral $150,000

Illawarra Mercury

Monday September 24, 2007

By CHALPAT SONTI

THE men behind a West Wollongong development have called on Australia's largest building materials supplier to pay them $150,000 for delays caused by under-strength concrete.

Builder Robert De Marcellis, of Foresight Constructions, is claiming the money in liquidated damages from Boral for a six-week delay to a $5.2 million New Dapto Rd apartment complex.

The complex's developer, Globe Estates, has claimed the amount from Foresight for the delays.

Boral has told Mr De Marcellis he must supply it with further proof before it will respond.

Boral's lawyers have also cast doubts on the links between Globe and Foresight.

Under-strength concrete was supplied to seven Illawarra developments from Boral's Port Kembla plant in September last year.

This was due to faulty calibration in a truck weighbridge.

Globe managing director Dimitri Bieri said this led to the delay in completion for the 24-unit complex.

It was now not scheduled to be finished until the end of next month.

Nineteen pillars had to be re-poured and a lift shaft strengthened by other means.

"We did everything we could to help Boral out in this case, but they haven't returned the favour," Mr Bieri said.

"We're a bit peeved off. They're a big company that thinks we're so small we'll give up and go away, but we won't."

Mr De Marcellis said the saga was causing him to consider quitting the industry.

Tony Charnock, Boral NSW's regional general manager of construction materials, said Foresight needed to substantiate its claims for damages.

Boral had "immediately rectified" the concrete problem at the site by removing and re-pouring the columns.

This took eight days and was done at Boral's expense.

Mr De Marcellis said this cost about $70,000.

A letter from Boral's lawyers to Mr De Marcellis says there are "issues" about whether the claim is genuine.

The letter questions the similarity in the management and shareholding of Foresight Constructions and Globe Estates.

But Mr Bieri and Mr De Marcellis insist the claim is genuine.

Mr Bieri said he would claim the $150,000 from Foresight under the terms of their contract.

The apartment complex has been beset with problems since it was first mooted four years ago.

Development approval took about a year, which Mr Bieri estimated cost him about $150,000.

The building had to be lowered by two storeys, although the number of units increased from 18 to 24.

Mr Charnock said Boral had started legal proceedings against the company that provided the calibration service.

© 2007 Illawarra Mercury

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