The Raffles Apartments Napier project, on the edge of Napier CBD, where 30 apartments are being built. Photo / Gary Hamilton-Irvine
The Raffles Apartments Napier project, on the edge of Napier CBD, where 30 apartments are being built. Photo / Gary Hamilton-Irvine
Contractors working on a large apartment project on the edge of Napier’s CBD claim tens of thousands of dollars worth of work has gone unpaid by the developer.
Legal proceedings have been started by one labour-hire company over what it claims is 500 hours’ worth of unpaid labouron the Raffles Apartments Napier project, while another contractor has temporarily stopped work at the site due to non-payment.
The developer, Malcolm Herbert, said there was a “dispute” with the labour-hire company and “you are allowed to have a dispute”.
He said there were “no other disputes” with any other contractors and the project was still on track to be completed by February, 2025.
Raffles Apartments Napier is a 30-apartment project being built in a four-storey building on Raffles St by Herbert Construction, whose sole director is Malcolm Herbert.
Labour-hire company Workforce Solutions claims 500 hours of invoiced work has gone unpaid from April for five of its hired workers (totalling about $28,000).
Workforce Solutions and its parent company MCNZ Group have made an application in the High Court at Napier to put Herbert Construction Ltd into liquidation. That application is set to be heard in court on September 5.
Another contractor, who did not want to be named, said his crew had only been paid for two weeks’ work, despite working on site for the past six weeks.
He was hopeful he would be paid but stopped work on Friday until Herbert paid him.
Hawke’s Bay Today called Herbert twice about the situation. He responded by text message.
The project is in a prime spot with a short walk to the centre of Napier. Photo / Gary Hamilton-Irvine
In one he said there was a “dispute” with Workforce Solutions and “you are allowed to have a dispute”.
When asked about payment issues with other contractors, he replied: “Payment is made monthly so the other contractor that has been paid two weeks for the previous month is due payment from lender next week”.
He added “payment is made direct to supplier/contractor via project funder” which is a monthly payment, but did not clarify what Funder was.
Hawke’s Bay Today visited the site on Tuesday and work appeared to be relatively quiet, with only three workers visible.
“All interior framing completed,” a text message from Herbert read. “We are waiting on windows delivery, the building needs to be watertight before interior linings can be installed.”
MCNZ Group general manager Ellie Stone said five of her workers from Workforce Solutions had worked on the project, and there was $28,000 of outstanding invoices from April.
“He has not paid us. He kept promising to pay but he did not pay,” she said.
“From January 17 until the end of April we were working with him. He started paying the payment regularly at the start and then in the last month ... he stopped paying but I was still providing a service to him.”
She claimed “without notice he sent [the five workers] back” and he did not pay the final invoices.
She said her workers were all paid by her company, but Workforce Solutions had not recovered that money.
She claimed they had unsuccessfully tried to recover the payments through a collection agency and now had to begin court proceedings.
“Now we are just trying to make sure that we can liquidate his company. It is just not right what he is doing.”
The apartments remain up for sale and are being marketed through real estate company Bayleys.
Last year, Herbert and another of his companies, MAH Enterprises, were fined $96,000 after an investigation found 42 breaches of employment law involving migrant workers, including not providing annual leave entitlements.
Gary Hamilton-Irvine is a Hawke’s Bay-based reporter who covers a range of news topics including business, councils, breaking news and cyclone recovery. He formerly worked at News Corp Australia.
