About 50 workers have been pulled off Queenstown's $1 billion
Kawarau Falls Station development following a dispute between
contractors.
CBD construction director Grant Blackmore confirmed his
company had stopped work at the site on Monday.
"We are currently in dispute with Hawkins [Construction], so
until that matter is resolved, we are not working on site.
"Things might develop over the next few days," he said.
He declined to comment further.
Hawkins Construction chief executive Chris Hunter, of
Auckland, could not be reached for comment.
Cromwell-based CBD employed about 50 permanent staff and
contractors at the site.
The Otago Daily Times understands workers were called into a
meeting on Monday and told to stop work.
CBD was subcontracted by Hawkins Construction, which is
contracted to build the 177-room Westin Queenstown, one of
two hotels being built in stage 1 of the development.
A spokeswoman for the five-star Westin hotel, owned by
Starwood Hotels and Resorts, told the Otago Daily Times last
month the chain had stopped taking bookings.
The hotel had been in limbo since two companies associated
with stage one of the development, Melview (Kawarau Falls
Station) Investments Ltd and Melview (Kawarau Falls Station)
Development Ltd, went into receivership in May.
Receivers Korda Mentha allowed work to continue despite the
two Melview companies owing $180 million to Bank of Scotland
International, which called in the receivers.
The receiver's second report says the bank had continued to
fund the project with a further $62.8 million after the
receivership.
More than $64 million was spent on construction, $1.6 million
on receivers' fees and $795,645 on legal fees.
Rilean Construction is contracted to build Reserve and
Central South, which are stage 1 apartment complexes.
Director Stephen McLean said yesterday the apartments were
about six weeks away from completion and he had continued to
be paid by the receivers.
"Our payments have been made in a timely manner as per our
contract.
"We are progressing to completion as quickly as we can.
"The job has a good feel about it.
"It's unfortunate that others are not having as good a time
of it," he said.
Receiver Brendon Gibson could not be reached for comment.
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