Contractors and StromCorp at loggerheads

Union boss Mick Lane at the stalled StromCorp residential complex in Victoria Street, Wollongong, in April. Picture: ADAM McLEAN

Union boss Mick Lane at the stalled StromCorp residential complex in Victoria Street, Wollongong, in April. Picture: ADAM McLEAN

Work has remained at a standstill at housing projects in Bellambi and Wollongong as the developer continues to battle two contractors in court.

The legal stoush between StromCorp, headed by Michael Strom, and two contractors, who are allegedly owed thousands of dollars, is set to return to a Sydney court on Friday.

SRJ Constructions and Corrimal firm SPK Plumbing and Civil began action against Lifestyle Property Development Pty Ltd, also known as StromCorp, in April.

At the time, the construction union told the Mercury it had been asked to "keep an eye" on the projects to ensure new contractors did not start work while others were still waiting to be paid.

CFMEU NSW branch official Mick Lane said nothing had been done at either site since.

"The position hasn't changed; nothing's happening and I'd know about it if it had been," he said.

"It's a bit of a waiting game, really."

Mr Lane claimed at least a dozen contractors, including Illawarra-based earth-moving, painting and plumbing outfits, were still owed hundreds of thousands of dollars.

In late July, the court cases were mentioned in Sydney's Downing Centre where the matters were re-listed for Friday.

Lifestyle Property Development has lodged counter-suits against both contractors, which are also due to be mentioned in court on Friday.

The legal proceedings involve work on two projects - a multi-level residential complex in Victoria Street, Wollongong, and a group of townhouses in Brompton Road, Bellambi.

Mr Lane told the Mercury he had been contacted by two people who had bought into the Bellambi development and were "very concerned" about its future.

"They are worried about the situation, but what do they do?" he said.

"They've put their life savings in the place, and now it's in all sorts of trouble."

Mr Strom said the company was working with new financiers to provide a timely resolution to the matters.

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