ATC Commercial Development Update

The Auckland Trotting Club has taken the extreme step of severing ties with one of two construction companies engaged to build its new ‘223 Green Lane West’ commercial development.

It is understood local firm Canam Construction were ordered off the site of ‘Building A’ last week, an eight-storey tower where they were building over 110 units.

"The Auckland Trotting Club confirms that it has terminated the construction contract it held with Canam for the East Gate (Building A) project within the 223 Green Lane West development,” read a Wednesday afternoon statement.

“This is not a decision we have taken lightly. We have undertaken extensive negotiations with Canam to resolve issues relating to the construction contract, but no resolution has been found.”

In an email to its members last Thursday, ATC CEO Dominique Dowding and President Bruce Carter confirmed that a new company had been appointed to take over that part of the project.

 “The ATC has now contracted a new constructor known as CMP Construction Ltd. who have taken immediate possession of the site and have an excellent reputation for finishing projects on time.

“We want to also assure our members that Westpac continues to support the club.”

A well-placed source told The Informant that the ATC were unhappy with the performance of Canam and believed they had failed to adhere to their contractual obligations.

The project had fallen well behind schedule and it was starting to impact other aspects of the business, such as the projected increase in racing stakes.

The first cluster of nearly 250 apartments was supposed to be completed by the start of this year, and the new target of February 2019 looks forlorn, especially in the building being managed by Canam.

The New Zealand Herald reported on Wednesday that Canam Construction claimed they were owed money.

Managing Director Loukas Petrou called it a “complex situation”.

The ATC refuted these claims.

"Auckland Trotting Club wishes to make it clear contrary to any allegations to the contrary that it has complied with its payment obligations under its Contract with Canam."

The second tower (eight stories) and a third building (four stories), being constructed by Australian company Ganellen, are understood to be progressing at the desired rate and the ATC are said to be more than happy with their status.

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