Kawarau building firm keeps staff on

The Kawarau Falls Station project in Queenstown employs a total workforce of about 500, including subcontractors. Photo / Supplied

One of the country's largest building firms is employing 200 of about 500 workers on the troubled $1 billion Kawarau Falls Station construction site at Queenstown.

Chris Hunter, chief executive of Hawkins Construction, said no one was being made redundant despite receivership news which emerged this week and it was work as usual. "We have a total workforce there of 200."

The builder is just one of three lead contractors with Naylor Love of Dunedin and Queenstown's Rilean Construction. Many subcontractors are also on the site, taking the total workforce to about 500.

Hunter said he only learned of problems this week when receivership of two companies owned by developer Nigel McKenna was announced.

The Queenstown job is one of Hawkins' largest although the firm is also working on Auckland City's $80 million Aotea Square carparking/public area, Auckland Art Gallery beside Albert Park and the 13-level commercial East building in the Britomart waterfront precinct.

In Queenstown, reports have emerged of at least 50 workers leaving the troubled site amid fears third-string contractors could lose out if it the receivers order work to stop.

But Hunter said his team was still building at Queenstown.

"We are keeping our people fully informed. We understand everyone's concerns and are managing the situation as proactively as possible."

Hawkins Construction had secure payment arrangements, he said.

"We have a direct payment agreement which will ensure we get paid. I'm very satisfied with the funding arrangements Hawkins Construction has in place."

Hunter is keen to hear from KordaMentha about the future of the project.

"Work is carrying on in line with our contractual agreements and we are working with the receivers to get some clarity on what happens from here with the Kawarau Falls Station receivership."

Until the receivers had worked through a number of issues it was not possible to say whether there would be any impact on construction timelines or the project's final outcome, he said.

A Melview spokesman also reiterated that work was carrying on as usual.

Hunter said he had no plans to make workers redundant but he wanted to work with receivers Grant Graham and Brendon Gibson to get clarity about the situation.

He issued an assurance that other large South Island projects by his firm were unaffected by trouble at Queenstown.