Watchdog warned of companies
QUEENSLAND’S building regulator was warned by at least four different people about questionable practices by Queensland One Homes before it went into liquidation last month.
The company’s collapse has left 133 tradies and staff more than $3.4 million out of pocket and 35 would-be homeowners in limbo.
A related company, Empire Constructions Pty Ltd, is under investigation by the Queensland Building and Construction Commission for suspected illegal phoenix activity.
Four people have contacted the Bulletin this week with evidence they contacted the regulator with concerns about the companies as early as May last year.
Similar evidence of inaction by the building regulator surfaced in the wake of the collapse of Cullen Group, with subcontractors providing documents showing they warned the QBCC about up to a year before it collapsed.
Tip-offs to the QBCC in the Queensland One Homes case, made by phone and email, included complaints that work completed for one company was being invoiced by the other and that funds from Queensland One Homes were being used to pay Empire Constructions staff and other expenses.
One complainant, Brisbane software developer Dave Adams, warned the QBCC in June that Queensland One Homes had made multiple breaches to a contract to build his new home.
He phoned them “at least 50 times” and in a signed formal complaint told the regulator there was “potential phoenix behaviour” between Queensland One Homes, directed by Paul Callender, and Empire Constructions Pty Ltd, directed by his wife Amber Callender.
When he first complained, Empire Constructions Pty Ltd did not have a builder’s licence and he was told the QBCC licensing department would investigate the matter if a licence was applied for.
The regulator granted Empire Constructions a building licence 12 days before Queens- land One Homes went into liquidation.
“I let them know they were about to start a new company. I contacted ASIC and the ATO,” Mr Adams said.
“I made at least 50 calls to the QBCC over the process and their only advice to me was to get a lawyer.
“On July 6 I got a notification Queensland One had gone into administration and then found out the QBCC had given Empire Constructions Pty Ltd a licence.
“I went through an absolute nightmare with these builders – I didn’t want it to happen to anyone else.”
Minister for Housing and Public Works Mick de Brenni did not answer questions about the QBCC’s apparent lack of action over the complaints, but conceded the system was “broken”.
“I think anyone looking at what has been reported by the Bulletin would be disgusted by the thought of people using liquidations that destroy the lives of subbies and homeowners,” he said.
“Subcontractors and consumers are at the mercy of a broken system that has allowed too many people to do too much damage to too many lives.
“The current laws in Queensland are inadequate to protect subcontractors and to address phoenixing. I intend to see that fixed as part of our comprehensive reforms.”
The QBCC had not responded to questions from the Gold Coast Bulletin last night.
I MADE AT LEAST 50 CALLS TO THE QBCC OVER THE PROCESS AND THEIR ONLY ADVICE TO ME WAS TO GET A LAWYER DAVID ADAMS