Hilton's opening in disarray after Hartner's fall

By ANNE GIBSON

Doubts are being raised about whether the Hilton Hotel will meet its planned April 1 opening, as two months of work has yet to be completed and the contractor, Hartner Construction, is in receivership.

According to the man charged with its completion, Paxton Construction Management project manager Malcolm Brown, about 20 subcontractors are needed to finish the $50 million hotel.

Mr Brown said remedial painting work, plumbing, tiling, sealant and electrical jobs still had to be finished: "Basically all the things you would expect in the final stages of a job like this."

As to whether the hotel would be finished in time for its scheduled April opening, Mr Brown said that would depend on receiver John Waller of PricewaterhouseCoopers.

"He has yet to make his mind up whether he wants to finish the hotel, which he has a right to do.

"Hartner [as a company] in receivership can finish it if the subbies can work with them."

That point is still up in the air this week, as subcontractors are meeting around Auckland to determine whether they want to go back to the job.

The extent and value of the remaining work are still being determined.

A team of quantity surveyors are inspecting the Hilton with Mr Brown to work out exactly how much work has to be done before the hotel can be deemed to be complete.

Subcontractors with work to finish are being invited to this week meet representatives of David Henderson's Kitchener Group, which is keen to finish in time for the scheduled opening.

A subcontractors' representative said approaches had been made to two subbies, who were owed more than $1 million for their work.

No decisions had yet been made by the subbies, who were still surprised and upset at being unable to retrieve their equipment and tools from the Hilton after last week's receivership move.

Peter Degerholm, executive officer of the Building Subcontractors Federation, said he wanted more financial information on Hartner's position.

He wanted to know the amount of retentions or money owed to Hartner on its various jobs, the retentions Hartner was holding on work it contracted out, the costs of the receivership, and salary costs.

Mr Degerholm said he was looking forward to the report promised by the end of this week from the receiver, John Waller.

The Building Subcontractors Federation represents 4000 companies and 15 trade associations.

The Hilton was scheduled to open last October, but this was delayed to April 1.

In a statement last week, Hilton general manager John Ingram said he expected the 167-room hotel to open on time, but it now appears it will be delayed by at least a fortnight.

"I am going to say mid-April at this very second," said spokeswoman Kathy Cunningham. Mr Ingram said two floors had been completed and the remaining five were just weeks away from completion.

"Due to the stage of completion of the hotel, we do not expect any substantial delays with the opening."

Mr Ingram described the receivership of Hartner Construction as "most unfortunate."

"Until now they have been very much on the revised schedule with the project."

In his statement, Mr Ingram mistakenly referred to the company being liquidated, but this was later corrected.