QBCC pays out $2.5m to customers of failed PlanBuild

Queensland’s construction watchdog has paid $2.3 million in claims so far to victims of a building firm that collapsed earlier this year, leaving scores of unfinished homes, but a third of the total claims are still waiting to be addressed.

One of PlanBuild's award-winning homes.

Queensland’s construction watchdog has paid $2.3m in claims so far to victims of a building firm that collapsed earlier this year leaving score of unfinished homes.

The Queensland Building and Construction Commission (QBCC) said it had received a total of 88 claims from customers of Kedron-based PlanBuild under its Queensland Home Warranty Scheme. A QBCC spokesperson said 50 claims had been finalised under the scheme, which is designed to protect homeowners if a builder goes bust.

Liquidators Hall Chadwick were appointed to the award-winning firm in April after customers started complaining to the QBCC that their projects were not being completed.

QBCC said in the financial year to June 30, 2021, it had approved claims from PlanBuild clients worth $784,345.16 while in the current financial year it paid claims worth $1,493,295.06.

It said it will continue to assess claims the remaining 38 claims, which included 18 for non-completion of homes and 18 for defective work.

Hall Chadwick said Plan Build had total debts of $3.7m including $2.6m to unsecured creditors and $298,444 to its former employees.

One of PlanBuild's award-winning homes.

Plan Build, who directors were Robert Thomson and Andrew Dean, was founded in 2003 to “provide Queensland homebuyers with affordable new houses that represent outstanding value-for-money.” In 2015, the company won a national award for its projects homes.

Building industry experts say price increases for highly sought after materials, paired with the company’s attempt to remain competitive by dropping prices contributed to its failure.

“Some of their build contracts I couldn’t justify what they were selling it for,” said one subbie. “It seems to be a trend when builders are struggling financially they drop the contract prices to get more money in the door straight away but it destroys them later down the track.” According to QBCC data, the number of projects undertaken by PlanBuild has been declining since 2015 when it built 133 homes valued at more than $30m.

Hall Chadwick said it was continuing its investigations into the collapse of the firm and had issued directors, Robert Thomson and Andrew Dean, with letters of demand for the payment of more than $2m.

The liquidator said Plan Build had experienced negative working capital since July 2020 with an outstanding tax debt to the Australian Taxation Office.

Have you been affected by the collapse of PlanBuild, contact: [e-mail]

STAGE FRIGHT

Watkins Steel boss Des Watkins was lost for words at the Lord Mayor’s Business Awards on Friday night. Watkins was called upon to give a brief speech when his 53-year-old steel fabrication firm picked up the ISPT Award for Investment in Brisbane.

Less than 30 minutes later Watkins was called up on stage again to accept the Platinum Award for being the “best of all” category winners. “Sorry I only had one speech prepared,” said the laconic Watkins as he accepted the second award and walked off stage.

Des Watkins from Watkins Steel. Picture: NCA NewsWire / Sarah Marshall

By that time of night, the guests at the City Hall event were more than happy to applaud and concentrate on their desserts. Watkins was recognised for its innovative work in robotics and extended reality technologies used to support their manufacturing.

Swyftx co-founder Alex Harper also picked up two gongs, the ANZ Award for High Growth Business and the Port of Brisbane Award for Young Business Person of the year.

SILLY MOVE

Solly Stanton is on a roll. The founder of Silly Solly tells your diarist the retail chain plans to open seven new stores in the next five weeks, the first being at Deception Bay this Thursday.

That will be followed by new outlets in Goulburn, Mt Druitt, Box Hill, Craigieburn, Thornton near Newcastle and Brendale.

Solly says the chain has the potential to reach 100 stores within the next couple of years with big growth

Staff at Silly Solly store in Hervey Bay when it opened last year.

in working class areas of Logan, the Sunshine Coast and the Gold Coast as families look to save their pennies, particularly during Covid-19.

Silly Solly’s, which operates under a licensee model rather than as a franchise, was founded three decades ago by Solly and relaunched a couple of years ago. City Beat spies tell us Rockhampton-based Stanton is as frugal as his product range, eschewing fancy restaurants and preferring to take his business connections to the local Hungry Jacks.

GOOD TRY

We hear former Brisbane lobbyist Jonathan Flegg helped the Redcliffe Dolphins win their successful NRL bid.

Flegg, the son of former LNP pollie Bruce Flegg, is now head of public policy at Sydney-based CT Group, which put together the Dolphin’s bid.

Key to its success was engaging both its die-hard supporters and younger female fans as well as proving the club had the financial power to support a bid for the national league.

A key message centred around the financial strength of the bid, the burgeoning population catchment the Dolphins represented and match-ready stadium venues.

Brisbane lobbyist Jonathan Flegg. Picture: Annette Dew

Flegg says it has been a 30-year journey for the Dolphins and he remembers watching the players from the dug out as a kid growing up. The younger Flegg did a brief stint at Geoff Rodgers’ Rowland PR outfit about a decade ago.

WINE AND DINE

Apologies to Brisbane City Council infrastructure chair Cr Andrew Wines who City Beat mistakenly called an “assistant” last week.

Cr Wines was spotted with a pile of files rushing into meet his colleagues Cr David McLachlan and Cr Fiona King at Coddle Coffee Shop at Wooloowin last week.

Your diarist mistook the fresh-faced politician for an aide rushing to help the councillors but he realised his mistake when he saw a dapper Cr Wines at the Lord Mayor’s Business Awards on Friday night complete with tuxedo.

Your diarist also ran into veteran newsman and former Lord Mayor candidate Patrick Condren at the awards where he revealed a key plank of his failed campaign was installing beer on tap at City Hall. How did this man not get elected?