Administrator appointed to troubled builder Sommer

SUB-contractors are believed to be owed $9 million after one of the state’s major construction firms collapsed this week after the building watchdog suspended its licence. Administrators have now taken control of the company.

• Sommer collapse sparks search for a new builder
• Troubled builder blames developer

ADMINISTRATORS have been appointed to one of the state’s major construction firms a week after the building watchdog suspended its licence.

Trent Hancock, of insolvency firm PKF Australia, has taken control of Brisbane-based Sommer and Staff Constructions, which is believed to owe subcontractors about $9 million.

The Queensland Building and Construction Commission (QBCC) last week suspended the licence of the 44-year-old company, which is involved in commercial, government and residential projects, because of concerns it will not be able to pay its subcontractors.

The suspension left the 106-unit Citro Apartments in West End being developed by Melbourne-based Equire partially completed.

One subbie said he was owed $700,000 for work he performed on one of Sommer’s projects. Sommer and Staff Constructions commercial director Natasha Sommer-Burley earlier this week blamed the developer of the West End project for delaying payments, a claim denied by the developer. Ms Sommer-Burley was unavailable for comment yesterday.

West End’s Citro apartments have been left partially completed after Sommer was suspended by the QBCC. Picture: AAP Image/no byline

Subbies United spokesman John Goddard said builders could not wait to be paid by a developer before paying subbies.

The State Government is moving to strengthen financial oversight of building companies amid continuing troubles in Queensland’s $45 billion construction sector.

Housing and Public Works Minister Mick de Brenni said he was looking at options including reintroducing a requirement that building companies file audited financial records each year to the QBCC.

The Newman government scrapped annual reporting requirements in 2014, a move that industry sources say restricted the building watchdog’s ability to monitor companies that are at risk of insolvency or collapse.

Queensland subcontractors have lost hundreds of millions of dollars in the last few years amid a slew of company collapses. The QBCC last financial year suspended 173 builder licences and cancelled 98 for failure to meet financial requirements.

Mr de Brenni said the government had outlined in a discussion paper various proposals to boost financial oversight of builders. Submissions were invited from the public.

“I am committed to ensuring that the QBCC has sufficient industry oversight to reduce the risk of insolvencies and mitigate their impacts as much as possible,” said Mr de Brenni.