What’s the point of a world-class development if it’s entrusted to companies with a history of collapse?

Burswood Point: Ambition meets risk

Burswood Point is one of the largest urban development projects ever undertaken in Western Australia, designed to turn the Belmont Park racecourse peninsula into a major residential and entertainment hub over many years of staged construction.

When companies or individuals with a record of insolvency and unpaid debts are brought onto a project of this scale, the risks quickly become obvious. Work slows or stops. Subcontractors wait to be paid. Workers chase wages. Schedules slip, costs escalate and investor confidence begins to erode.

We’ve seen how this story ends. A contractor folds. The job stalls. People who did the work are left unpaid while the project scrambles to recover and budgets blow out.

So, why has a Construction Consultant, Cityscapes, with a history as a phoenix operator and owing millions in debt, been appointed to have a central role in this development?

Long-term projects demand stability

The risks are even greater when the project is expected to run for a decade. Developments of this scale demand stability, reliability and contractors with a proven record of meeting their obligations over the long term.

The phoenix problem

Major concerns are now being raised at the Burswood Point project, where companies or individuals known as phoenix operators have been appointed.

Why should phoenix operators be removed?

Phoenixing is simple in theory and damaging in practice.

A company shuts down or becomes insolvent to avoid paying debts – wages owed to workers and sub-contractors, taxes owed to government, invoices owed to suppliers – and then reappears under a new name to continue trading.

The business rises again. The debts do not.

Early warning signs on site

Early signs on site are already raising concern. Reports of questionable or substandard equipment appearing on the project risk becoming the thin end of the wedge. When standards begin to slip – whether in equipment, safety or compliance – it can signal deeper problems with the contractors involved.

Why trust matters

That is why the union is cautious about entering into an Enterprise Bargaining Agreement on a project of this magnitude with companies that have used phoenixing as a business model.

Enterprise agreements rely on trust, accountability and financial stability to ensure workers are paid and projects run smoothly and safely over their lifespan.

Proven success with quality labour

Across Western Australia, union labour working with reputable subcontractors has a proven record of delivering major projects the right way. Safely, professionally and to the highest standards. Time and again, developments have been completed on schedule and on budget because they were built by skilled workers and supported by quality contractors with a strong record of delivery.

That success is built on partnerships with companies that respect business practices, meet their financial obligations and maintain proper standards on site.

Protecting standards protects projects

Protecting those standards is not just about workers. It is about protecting the success of the project itself. Investors expect certainty. Communities expect quality. Developments of this scale deserve contractors who bring stability and integrity to the job.

Phoenix companies that operate on a cycle of insolvency often prioritise short-term survival over long-term quality. That environment can lead to poor equipment, substandard workmanship and shortcuts on safety and compliance – the very problems that lead to accidents, defects and costly remediation.

On a project expected to run for many years, those risks cannot be ignored.

Commitment to success

The union wants to see this project succeed safely, on time and on budget, built to the highest standards. Every stage should reflect quality workmanship and reliable equipment, delivering real outcomes for workers, the community and investors. It should also reflect on the quality of the developer.

The integrity of the developer is not in question. However, their decision to engage individuals in companies such as Cityscapes with a history of phoenix activity raises serious concerns and risks seriously undermining a project of this scale and importance.

The only question left is a simple one: Does the developer, Golden Sedayu, share that same commitment?

AUTHORISED BY MICK BUCHAN, STATE SECRETARY, CFMEU WA, 80 BEAUFORT STREET, PERTH WA