Construction crisis: Creditors line up for cash amid asset auction

Up to 100 creditors owed more than half a million dollars will be paying close attention to an upcoming auction of a Far North builder’s assets following the firm’s collapse earlier this year.

UP TO 100 creditors owed more than half a million dollars will be paying close attention to an upcoming auction of Sawcom Homes’ assets following the construction firm’s winding up.

The East Trinity-based construction firm had liquidators appointed on May 17.

Formerly trading as Sawcom Homes, NQ Adaptive Homes, Cairns Garden & Mowing Care and Sawcom Welding and Engineering the company offered new home builds and a welding and engineering service for domestic and commercial projects.

A 2021 model Isuzu light commercial vehicle will be sold at auction next Wednesday following the winding up of Cairns-based construction firm Sawcom. Picture: Quaid Auctioneers

BDO North Queensland managing partner Todd Kelly said seven homeowners caught up in the collapse were scrambling to find a solution to their partially completed projects when tradies walked off the job earlier this year.

“It’s a difficult situation and we have been in contact with homeowners,” he said.

“The vast majority of them have spoken to lawyers and have terminated contracts.

“And the vast majority have applied for assistance through the (Queensland Building and Construction Commission) that will trigger the warrantee scheme.

Co owners of Sawcom Industries, which incorporates Sawcom Welding and Engineering and Sawcom Homes Will Barnett and Steve Oates photographed in 2020. Picture: Brendan Radke

“They can be eligible for up to $200,000.”

Under the Queensland Home Warranty Scheme clients must lodge a claim within three months of the contact end date.

The building industry has been hit by a perfect storm of labour shortages and material price hikes in the past 12 months that has also led to the recent demise of Mareeba-based steel fabrication business Homefab and Cairns and Cape Construction. Scores of creditors have been chasing millions of dollars in unpaid invoices.

Mr Kelly said the main focus of the Sawcom winding up was the asset sale to be handled by Quaid Auctioneers.

“Our main priority is to get assets to auction next week,” he said.

In regard to the likelihood of any return to creditors Mr Kelly was coy.

“We are still in the process of quantifying that. It’s too early to estimate,” he said.

“From the information we have there is 100 creditors with total unsecured claims of $555,000.”

A Sunrise hydraulic punch and shear machine will be auctioned next week. Picture: Quaid Auctioneers

An auction catalogue lists a wide variety of assets to be sold including office equipment power tools, a hydraulic punch and shear machine, a 2021 model Isuzu light commercial vehicle, a Holden Colorado ute, assorted hardware items, welding equipment, chainsaws and power operated garden maintenance tools.

Bidders can inspect equipment on June 21 at 19 Redden Street, Portsmith, ahead of an online auction set down for June 22.

All bidders must be registered online to be in the running.

Originally published as Construction crisis: Creditors line up for cash amid asset auction