Construction company fined $400K after structural steel framework collapse

A construction company, now in liquidation, has been convicted and fined $400,000 following the collapse of a large section of structural steel framework at the redevelopment of the Kew Recreational Centre. After being found guilty of a single charge of failing to ensure a workplace under its management and control was safe and without risks to health, the company was sentenced ex-parte in the Melbourne Magistrates’ Court on 28 July, and also ordered to pay $7403 in costs.

Engaged by the principal contractor of the redevelopment to fabricate, supply and erect structural steel for the project in accordance with design drawings and fabrication requirements, the company was provided with a bundle of quality assurance documents for structural steelwork known as the GT1 truss in December 2021 — the fabrication of which it had sub-contracted to a China-based company.

A welded connection on the GT1 truss failed and a section of the partially erected Kew Recreational Centre collapsed in October 2022. No one was on site at the time. The truss was not fabricated in accordance with design drawings and fabrication requirements, a WorkSafe Victoria investigation found; meaning anyone on site near the unstable structure after it was erected in February 2022 was at risk of serious injury or death, the regulator said.

“The building was at risk of structural failure or collapse for months, which is extremely alarming,” WorkSafe Victoria Chief Health and Safety Officer Sam Jenkin said. “It was pure luck that the risk didn’t eventuate when people were on site.” Jenkin adding: “Having a robust system in place to ensure steelwork meets specific design requirements and Australian standards is simply a non-negotiable when importing products from overseas.”

It was reasonably practicable, the court found, for the company to have reduced the risk to health and safety by ensuring that before the truss was erected, a competent person reviewed the documents and verified in writing that:

• All welding on the truss was specified as Category Structural Purpose welding.
• Welding procedures for the fabrication of the truss were provided.
• Qualifications of the welders for the truss in the required welding procedures were provided.
• Full strength butt welds were subject to non-destructive testing including both visual and ultrasonic during fabrication.
• Welding inspection reports for the truss were in line with the design drawings and fabrication requirements.

In March 2026, the principal contractor of the redevelopment was also charged in relation to the collapse and entered into an $850,000 enforceable undertaking. You can read about this earlier charge and enforceable undertaking here.

Image credit: iStock.com/matt&stustock. Stock image used is for illustrative purposes only.