Firm blames demise on alleged official blunder

Press, 25 August 1988, Page 8

Firm blames demise on alleged official blunder

By

GLEN PERKINSON

An alleged blunder by Government officials is being blamed for crippling a Christchurch building firm, W. Williamson Construction Company, Ltd.

The alleged error, said to be a design fault in flooring plans for the Hereford Street office block built for the now defunct Ministry of Works and Development, may have cost the family firm more than $2 million and led to its recent receivership. But the alleged error may also cost Williamson hundreds of thousands of dollars if a steel-work sub-contractor on the $7 million job succeeds in separate arbitration. The outcome of that would determine whether Williamson would take the other company, Aspill Cochrane, or the Works Corporation back to arbitration, a source said yesterday. Williamson, put in receivership in May, has blamed cost over-runs and delays on the Hereford Street east building for its financial plight. The company would allege a design mistake, made by the then Ministry of Works and Development, caused the skyrocketing costs and delays on the building, the source said.

A Williamson director, Mr Murray Williamson, was reluctant to discuss the dispute but confirmed his company would allege a design fault led to extensive delays and huge cost over-runs. He also confirmed the company would make its claim in

September. Williamson is believed to be seeking more than $2 million in damages from Works Corp., the State-owned enterprise that has replaced the Ministry of Works and Development. It has also assumed responsibility for the Ministry’s liabilities. Aspill Cochrane is seek-

ing an undisclosed sum from both Williamson and Works Corp. It is, believed the alleged design error is the focus of its claim. The Works Corp district architect, now and during the project, Mr Jim Espie, said Aspill Cochrane would claim ■ Ministry working drawings for the 9000 sq m building were

inadequate. The allegedly caused problems and' led to delays and extra cost, he said. If the arbitrator found in favour of Aspill Cochrane, Mr Espie thought Williamson would “then come back on us.”

“It is all a bit of a legal argument,” he said, “but

we are quite prepared to take up the cudgels.” Other problems delayed the building’s completion. A steel workers’ strike at the Glenbrook mill in 1985 and a drivers’ strike soon after caused delays in the delivery of materials.

The contract for the building was let to Williamson in February, 1984. It was due for completion in August, 1986.

The finished building was handed over to the Government in February this year — almost two years overdue and apparently several million dollars over budget. It now lies empty. When Works Corp, come into existence, it decided to use the building. Instead, it moved into the Beaiey Park office complex. The Hereford Street building’s only other firm tenant, the Conservation Department, also opted out because of budget constraints. The Crown still owns the building, but another State-owned enterprise, Government Property Services, intends to buy it before the end of the year. G.P.S. is negotiating with about four prospective tenants for the building, described by its regional manager, Mr Dave Rowland, as a white elephant.