ADCO Commits $850k After Structural Collapse at Kew Recreation Centre

ADCO Group Pty Ltd has agreed to an estimated $850,000 enforceable undertaking after being charged with failing to ensure, so far as reasonably practicable, that a workplace under its management or control was safe and without risks to health. The matter was heard in the Melbourne Magistrates' Court on Thursday 5 March.

The charge related to ADCO's role as principal contractor on the Kew Recreation Centre redevelopment, where the company was responsible for the fabrication, supply and erection of structural steel in line with design drawings and fabrication requirements. Structural steel for a key component, known as the GT1 truss, was fabricated by a subcontractor based in China.

In December 2021, ADCO received a package of quality assurance documentation for the GT1 truss. WorkSafe Victoria alleges the company did not sufficiently reduce the risk to health and safety by ensuring that, before erection, a competent person had thoroughly reviewed these documents and confirmed in writing that the steelwork complied with relevant design and fabrication specifications.

In October 2022, a welded connection on the GT1 truss failed, resulting in the partial collapse of the under-construction Kew Recreation Centre. No workers were present on site at the time of the incident, averting potential serious injuries or fatalities.

Subsequent investigation found that the truss had not been fabricated in accordance with the approved design drawings and fabrication requirements. This meant that, from the time of erection in February 2022, anyone working in the vicinity of the unstable structure was exposed to a significant risk of serious injury or death.

The enforceable undertaking, to be implemented over a two-year period, is valued at approximately $850,000 and requires ADCO to undertake a range of initiatives aimed at improving structural safety and strengthening its work health and safety practices. These measures are expected to include enhancements to WHS management systems, quality assurance processes, and training, with learnings to be shared across the broader construction industry.

WorkSafe has confirmed that the original charge may be reinstated if ADCO fails to comply with, or withdraws from, the enforceable undertaking.

WorkSafe Chief Health and Safety Officer, Sam Jenkin, said the extended duration of the unmitigated risk was particularly troubling, and emphasised the importance of rigorous quality assurance when working with imported steel.

"It is essential that workplaces using imported steel have robust quality assurance systems in place to ensure the steelwork meets design requirements and industry standards so that people are protected from the risk of structural failure or collapse," Mr Jenkin said.

He noted that the undertaking is designed to deliver broader industry benefits over its two-year term. "This comprehensive enforceable undertaking will ensure that over the next two years, ADCO contributes meaningfully to the wider construction industry by addressing any safety gaps with the latest information, research, standards and training to help prevent similar incidents from happening in the future. This will be a good outcome for the Victorian community."

From a work health and safety perspective, the incident underscores the need for construction businesses to maintain documented WHS management systems, robust structural quality assurance procedures, and clear policies for the verification of critical components. Tools such as formal WHS management systems and Safe Work Method Statements (SWMS) can assist duty holders to demonstrate that risks associated with structural steelwork have been identified, assessed and controlled as far as is reasonably practicable. For more information on developing or updating WHS management systems, see work health and safety management systems.

Colab Building Tech Pty Ltd, the subcontractor that engaged the overseas fabricator of the GT1 truss, is also facing charges in connection with the incident.