Licence despite warning
“Mr Hill’s current licence does not allow him to contract with the public or authorise him to perform building work, or to provide management or advisory services relating to building work.
“The QBCC has also commenced additional investigations in regards to Mr Hill’s current licence.
“The QBCC is working with customers and subcontractors affected by this company collapse and we urge anyone with information or concerns about the company to contact us.” A CIVIL court heard failed building company AB Hill Constructions was a risk to the public due to numerous breaches of financial requirements and unpaid debts — but returned its building licence anyway.
For 28 days after that decision, the company was allowed to trade as usual, collecting hundreds of thousands of dollars from clients despite dire warnings about its financial status.
The Queensland Building and Construction Commission suspended the licence of Adrian Hill’s company in October 2017 for failing to satisfy financial requirements.
The company had failed to keep its financial records up to date, hadn’t paid mandatory insurance premiums and had outstanding debts that resulted in eight formal “monies owed” complaints.
AB Hill appealed the suspension in the Queensland Civil and Administrative Appeals Tribunal, requesting it be stayed while a review took place.
Court documents show the QBCC strenuously objected to the stay, arguing that the company had multiple breaches of financial requirements and its chance of remedying the situation was poor.
“It is not in the interests of the public or the building industry for a company that is breach of the minimum financial requirements condition to continue to hold a licence,” the QBCC submitted.
Defending his company, Mr Hill did not deny the numerous breaches but attributed them to the “ebbs and flows” of the industry.
The company submitted it had dealt with old debts and promised to make them good through “an inflow of funds” from projects and the sale of unspecified properties at undisclosed sums.
QCAT member Robert Olding found the “drastic impact” an ongoing suspension would have on the company and its customers were enough to lift it.
In granting a stay on the suspension, Mr Olding imposed reporting and other conditions.
As foreshadowed in court, AB Hill’s financial situation did not improve and its licence was inevitably suspended for non-payment of debts on December 20 and cancelled on January 22.
Revelations of the QCAT stay on AB Hill’s licence suspension followed a similar case with Empire Constructions, who were allowed to continue trading despite being under investigation for alleged phoenix activities between it and a related collapsed company Queensland One Homes.
The judge in that case didn’t just grant a stay on the suspension, but also a non-publication order so the public will never know why it was granted.
Empire too went on to have its licence cancelled after failing to meet requirements.
The QBCC yesterday said it had started exclusion action on AB Hill and was investigating other action it could take on Mr Hill’s individual supervisor licence, which remained active.