Games subbies’ fury after Ware collapse
They include:
Westwood Workshop’s $90,000 for kitchen/bathroom cabinetry, woodwork;
A1 Interior Linings, owed $200,000;
Vision electrical firm, up to $150,000;
Danlaid Contracting, $45,000 for waterproofing.
Westwood office manager Nicole Goodwin said her firm walked off the job, claiming Ware Building stopped payments and they were owed invoices from months ago.
“Grocon have washed their hands of it, they are saying Ware have paid everyone but they have not,” she said.
A1 owner Peter Guild said a group of frustrated subcontractors aimed to front Grocon next week.
Vision estimator Brad Hunt said: “It’s a government site, there should not be any worries from a government project when getting paid.”
A spokesman for Games Minister Kate Jones said Grocon held a banking guarantee it could draw down on to pay subcontractors for “exactly this purpose”.
“We want all subcontrac- tors paid on time. Any subcontractors with concerns about outstanding payment should contract Grocon.”
Shaw Gidley director Scott Newton, appointed liquidator for Ware, said there were outstanding claims by Ware against Grocon for $1 million plus $1million in retention payments held by Grocon.
Mr Newton said Grocon were within their rights to hang on to retention payments – for extra work required upon completion – but ideally the contract would have been completed and $1 million released to Ware.
He understood Grocon had levelled a claim against Ware Building for $2.5-7 million. A Ware source said it was believed to relate to time- liness of delivery but blamed Grocon for holding Ware up.
Mr Newton said paying “substantial” creditor claims was reliant on recovery of claims and retentions.
Grocon declined to comment on the accusation it had hit Ware with a $2.5m claim.
Grocon said it was working through contractual processes “as quickly as possible” after it was notified Ware Building would enter voluntary administration.
“Grocon is liaising with relevant parties including with Ware Building’s subcontractors as a high priority.”
Devastated Ware Building founder Mark Ware said Grocon “have a lot to answer for”. “I spent a lifetime building it and we’ve lost millions.” A GOLD Coast building firm boss says recent collapses are the “tip of the iceberg” and predicts 2018 will be a “bloodbath” for construction companies.
Condev Construction managing director Steve Marais said the industry was in a perfect storm of increased red tape, inexperienced build firms putting in low-ball tenders accepted by developers and low single-figure margins on jobs.
Mr Marais said operating a mid-tier building company was one of “the most difficult challenges someone can face”.
“With what’s happened with Cullen Group, Ware Building, it’s honestly the tip of the iceberg,” he said.
“Next year is going to be a bloodbath for the builders who are mid-tier builders.
“We are working on low, single-figure margins. It doesn’t take much.
“When you look at financial year results of building companies this year they will be distressed. The market ahead is not changing, in fact it’s becoming more pressurised.
“You don’t see mid-tier builders walking around highfiving each other.”
Mr Marais delivered the grim outlook in the wake of recent build company collapses.
They included Ware Building Pty Ltd and Queensland One Homes. Both have gone into liquidation with the latter leaving 133 tradies and staff $3.4 million out of pocket.
Mr Marais predicted half a dozen construction companies would collapse next year and said he wouldn’t be surprised if they included a major player.
“I think it’s going to take a big one to go for people to see how distressed builders are.
“It’s not subcontractors doing it tough, it’s builders and subsequently subcontractors.”
Gold Coast tradies were also stung by the collapse of Cullen Group while Batir Pty Ltd halted construction on sites, owing $2.1 million.