CONSTRUCTION of the Transport Accident Commission's new $85 million home in Geelong could be delayed following failed negotiations between FKP and builder Baulderstone Hornibrook.
Baulderstone Hornibrook was chosen by Wilbow Corporation to build the TAC’s new headquarters, when it submitted a tender for the project.
At the same time, Wilbow was in negotiations with FKP over a takeover bid, which resulted in FKP paying $284 million for the private development company in September last year.
A month following the takeover, the TAC awarded the project tender to FKP.
FKP was prompted to renegotiate a new deal with Baulderstone Hornibrook and both parties have walked away after failing to reach a new agreement.
The project is earmarked for completion in 2008/2009 financial year with the TAC moving in shortly after.
TAC has signed a 20 year lease for 15,000 sqm of office space.
While the project is without a builder, FKP is believed to have started earth moving activities to kick start the construction and ensure the project meets its deadline.
If the project is delayed, it could spell a nightmare scenario for TAC, which currently occupies 12,500 sqm of space at the Allco REIT owned
That lease is set to expiry in 2009.
Australian Property Journal
