Showdown in Hartner legal row

By ANNE GIBSON property editor

A dispute between one of New Zealand's largest builders, Hartner Construction, and a firm who worked for it goes to the High Court at Auckland next month.

Collapsed contractor Alotech Walls & Ceilings, which worked on many Hartner building sites, has applied for a winding-up petition against the builder.

But Hartner claims Alotech owes it money and is defending its position.

Alotech's joint liquidators, Bernard Montgomerie and Bill Ferguson of Montgomerie & Associates, said Hartner owed Alotech $1.3 million.

Hartner general manager Peter Kay said Alotech owed Hartner more than $1 million as a result of what he claimed were problems on Hartner sites.

The hearing is on February 14.

Hartner is also in dispute with developer David Henderson over the Auckland Princes Wharf project, claiming that $3.5 million is owed on the first stage of the building work.

Hartner's director of finance, Mike McQuarrie, said Mr Henderson disputed this figure and maintained he owed Hartner only $1.3 million.

Mr McQuarrie said an arbitration hearing was due in March between Hartner and Mr Henderson's Kitchener group over the Princes Wharf work. Mr McQuarrie said the dispute involved sheds (apartment blocks) 19, 22 and 23.

Hartner, with its headquarters at Onehunga, is the fourth largest building firm in New Zealand.

Mr Kay said its turnover last year was $140 million.

One of its biggest jobs was building five of the six large apartment blocks on Princes Wharf, including the new Hilton Hotel.

Mr Kay criticised the quality of Alotech's work and its timing.

He said other subcontractors had to be brought onto sites to complete wall and ceiling jobs, all at a cost to Hartner.

Alotech worked on various Hartner sites, including Princes Wharf shed 20 and shed 21, the six-storey Gladstone serviced apartments on the corner of Gladstone Rd and The Strand in Parnell, and the $8 million Eden Quarter retail and office complex on the corner of Dominion and Ewington Rds.

Eden Quarter includes a new 3000 sq m Foodtown supermarket, as well as 20 retailers.

Alotech owes at least 55 creditors $2.9 million. It was placed in liquidation last June.

Mr Kay said evidence showing what Alotech owed Hartner would be presented at the court hearing.

"We have commissioned a firm of professional quantity surveyors to independently investigate the matter, and whether we are owed money or they owe us," he said.

"Their conclusion is that Alotech owe us in excess of $1 million."

Mr Kay said he was aware of attempts being made to get other subcontractors to join Alotech in the action.

He said the legal action by Montgomerie & Associates was "injudicious."