WORK at the Quest Midland site stopped in about August but a spokeswoman for Quest Apartment Hotels says the building is on track to be completed in the second half of next year.
Echo News asked Quest Apartment Hotels whether builder DGX Construction – part of Diploma Group Ltd – was still contracted to build the 93-apartment project.
The spokeswoman said she was unable to comment on that question or others about whether subcontractors who were working on the site had been paid for the work they carried out and when work at The Crescent site would start again.
When asked whether the situation had led to any financial issues for the Quest Midland franchisee or was Quest Apartment Hotels still trying to secure a franchisee for Quest Midland she said the franchisee selection process was yet to start.
But in April a statement from the company said expressions of interest regarding the opportunity to become franchisee of the new Quest properties in Innaloo and Midland were still open but due to close soon.
This week Quest Midland was still listed as a project on Diploma Group Ltd’s website.
The website said the Quest Midland contract was for the construction of an eight-storey building with an underground basement.
Another project listed on the website is the Yanchep Surf Club but DGX Construction was formally notified its contract to build the new surf club had been terminated by the City of Wanneroo on Thursday, September 29.
City of Wanneroo assets director Harminder Singh said the city had ended its contract as the contractor did not have a reasonable excuse for being behind on construction of the new surf club.
“There had been an adequate performance for several months from the award of the contract in February, however from August the city had become increasingly concerned with the departure from the approved program,” he said.
In May, Diploma Group defended its subsidiary Diploma Construction (WA) after it was accused of owing money to dozens of subcontractors.
At the time it was reported that Diploma Group had denied it was behind on paying its bills.
On Wednesday, October 26 Building Commission commissioner Peter Gow said the commission was investigating Diploma Construction (WA) Pty Ltd and assessing the available information to determine its performance and viability as a registered building contractor.
Mr Gow said as part of the commission’s investigation it was also assessing other entities related to Diploma, including registered building contractor DGX Constructions Pty Ltd.
“The Building Commission has engaged McGrathNichol to assist with its investigation into Diploma Construction (WA).
“McGrathNichol’s role is to provide specialist financial and accounting expertise in relation to the Building Commission’s investigation into Diploma,’’ he said.
“It is not common but where necessary the Building Commission will contract appropriate specialist advice.’’
Diploma Group Ltd was contacted for comment.
By Anita McInnes