Geelong contractor to lose $20k as building company collapses

A Geelong contractor has revealed the toll on his business amid a Queensland building company’s collapse, fearing indefinite delays for budding homeowners on their local projects.

A local contractor says he stands to lose $20,000 as the Privium Group shuts down the bulk of its building operations.

In a move that has “blindsided” employees and homeowners, the Queensland based building company said it would transfer uncompleted projects to a separate builder called Torsion, however Victorian projects remain in limbo.

It has been warned the company could collapse while owing $20m to various subcontractors.

The local contractor who has been working with the company for a number of years said he caught wind of the news without hearing any official word.

“They owe me $14,000 for a job that I had contractors on for two weeks. That cost me $6,000,” the man, who declined to be named, said.

“This is going to hurt a lot of trades, for me it has cost $20,000 coming into Christmas.

“I don’t expect to see that money again.”

Along with his latest job for the company, he confirmed there were a number of houses across the region that will be left untouched.

“The whole thing has come to a halt, I don’t even think owners know,” he said.

“From what I understand the company is going into liquidation and houses could sit there for nine months.”

Privium Homes display. Photo: Supplied

Assured that everything would be fine a month ago, he said he had jobs lined up for the remainder of the year in Curlewis and St Leonards.

“Someone was allowing us to keep working, knowing that I wasn’t going to be getting paid,” he said.

“I have a feeling that no one knows, and we are talking about a lot of homes. A lot of people are going to lose a lot of money.”

The news comes as the Privium Group reported a loss of more than $28m last year with the construction industry impacted by shutdowns, labour shortages and price hikes caused by Covid-19. However, in the same period it paid dividends in excess of $18m.

In a letter to a client from Privium, chief operations officer Troy Seaward warns a large number of projects are on hold until further notice while the company manages “workflow complications.”

Privium display home. Photo: SUPPLIED

“Right now I do not know when your property will commence,” he said.

“Privium is currently experiencing delays and complications across the entirely of its operations.”

Privium told clients and their lawyers last month that they should transfer the contracts signed with Privium to Torsion or risk the homes “being placed on hold indefinitely.”

Earlier this year, Privium was named 11th biggest builder in Qld by HIA and completed more than 600 projects worth $183m last financial year.

In 2019, the company offered clients a new MG car when they moved into their home and also had employed celebrity chef Neil Perry to give cooking demonstrations.

Comments have been sought from Privium.

Originally published as Geelong contractor to lose $20k as building company collapses