Collingwood site dispute dials up financial pressure on Grocon
The storied Grocon construction empire is once again being pushed to its financial limits with the company dogged by a dispute at a building site in Melbourne’s inner-city suburb of Collingwood.
The Grollo-led company is not wrestling with its traditional foes in the union movement, but is in a commercial dispute over payments on the site, where the Liberman family’s Impact Investment Group is developing an office project, over subcontractors owed up to $8m.
The near-complete building has been stalled as Grocon, which is on a fixed-price contract, reportedly pushed Impact to pay subcontractors to get the site moving again. But Impact investors have considered terminating Grocon and finding another builder as it deals with its financial woes.
The dispute is but the latest to cast a shadow over the Grocon name as the famed private company makes a messy shift away from the gritty construction industry that was the foundation of the Grollo family’s fortune.
The Grollo family is synonymous with the construction sector in Melbourne, building such buildings such as the Rialto Tower, Crown casino complex and dozens of others.
Bruno and his brother Rino’s father Luigi had arrived in Australia from Italy in 1928, starting his own concreting business in the 1940s with a small team of workers and one truck.
– with John Stensholt
This article originally appeared on www.theaustralian.com.au/property.