$400,000 fine after Kew Rec Centre collapse

Colab Building Group Pty Ltd, now in liquidation, was sentenced ex-parte in the Melbourne Magistrates' Court on Tuesday 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 also ordered to pay $7,403 in costs.

The court heard that Colab was engaged by the principal contractor of the redevelopment, ADCO Group Pty Ltd, to fabricate, supply and erect structural steel for the project in accordance with design drawings and fabrication requirements.

In December 2021, Colab was provided with a bundle of quality assurance documents for structural steelwork known as the GT1 truss, the fabrication of which it had sub-contracted to a China-based company.

The court found that it was reasonably practicable for Colab 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 October 2022, a welded connection on the GT1 truss failed and a section of the partially erected Kew Recreational Centre collapsed. No one was on site at the time.

A WorkSafe investigation found the truss was not fabricated in accordance with design drawings and fabrication requirements, meaning anyone on site near the unstable structure after it was erected in February 2022 was at risk of serious injury or death.

WorkSafe Chief Health and Safety Officer Sam Jenkin said it was crucial for companies to have strong quality assurance systems in place when working with imported steel.

"The building was at risk of structural failure or collapse for months, which is extremely alarming," Mr Jenkin said. "It was pure luck that the risk didn't eventuate when people were on site."

"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."

ADCO Group Pty Ltd was also charged in relation to the collapse and entered into an $850,000 enforceable undertaking in March 2026.