Award-winning builder, Urban Trend Construction, goes bust owing over $1.5m

Clients face the prospect of incomplete homes after the sudden liquidation of an award-winning Australian builder.

Clients are left grappling with the prospect of incomplete homes after the sudden liquidation of a regional Queensland builder.

Mackay builder Urban Trend Construction (UTC) has recently entered liquidation, the Daily Mercury reports.

Documents reported by the publication reveal that UTC, directed by Kenneth and Kathryn Ogilvie of Blacks Beach in Mackay, owes creditors over $1.549 million.

UTC, previously registered for work on the Gold Coast, has a history of accolades, including numerous awards from the Housing Industry Association and Master Builders Queensland for its exceptional new builds and renovations over the past 15 years.

Urban Trend Construction, a builder now in liquidation, boasted dozens of awards including from Housing Industry Association and Master Builders Queensland. Picture: Urban Trend Construction

But the company now faces a list of creditors that includes multiple landowners, the Australian Taxation Office, WorkCover, Aero Glass and Aluminium, Boral, Porters Mitre 10, Volkswagen Financial Services, Pacific Coast Scaffold, numerous trustees, and a former company director.

Charles Preen, the father of Ms Ogilvie and a former director of UTC, was removed from his position months before the liquidation, it was reported.

Mr Preen, through his company Preen Investments, held shares in UTC and is now reportedly listed as a creditor seeking $520,000.

Kenneth Ogilvie, the director of UTC, and his wife are facing challenges following the liquidation, attributed to cash flow issues exacerbated by fixed-price contracts. Picture: Urban Trend Construction

“I’d been asking to be removed (as a director) for a while because I was under the understanding they (Mr and Ms Ogilvie) were going along okay,” Mr Preen explained.

He noted that his claim as a creditor stemmed from attempts to support his daughter and son-in-law through a challenging business period.

Mr Preen attributed UTC’s downfall to cash flow issues exacerbated by fixed-price contracts, particularly for architecturally designed homes like a $4.5 million build in Airlie Beach, which suffered due to soaring material and labour costs.

“It’s pretty sad actually because they worked hard … Ken is a second-generation builder, his father was as well,” he said.

QBCC records reportedly indicate that UTC’s license was suspended earlier this year due to “failure to satisfy financial requirements.”

Former clients of UTC who are now creditors have until July 16 to contact SV Partners as investigations are ongoing to determine whether UTC traded while insolvent. Picture: Urban Trend Construction

Former clients of UTC, now creditors, are urging others with unfinished builds or defect concerns to contact SV Partners by the July 16 deadline.

Frank O’Neill, director at SV Partners Mackay, has been appointed as the liquidator for UTC.

Mr O’Neill told the regional Queensland masthead that they are investigating whether UTC traded while insolvent and are in discussions with stakeholders, including QBCC and Master Builders.

“Depending on the date that I determine that the company became insolvent, the directors, including the former director, may be liable … I note Charlie (Mr Preen) provided a significant amount of WCAP (working capital) to assist with the company’s daily operations so that will need to be considered,” he said.

He added that the QBCC has either terminated or is in the process of terminating existing contracts with UTC, and homeowners are advised to contact the QBCC to make claims through the Queensland Home Warranty Scheme or their relevant insurance.

In a recent report by news.com.au, it was revealed that despite a high demand for new homes, the construction industry has been hit hard by economic downturn.

Nearly 3000 building companies have gone bankrupt in the past year, showing a significant increase of 28 per cent compared to the previous year.

Data from ASIC indicated that there were 2832 insolvency appointments made in the construction industry over the past 12 months, while there were 2213 insolvencies in the previous year.

Originally published as Award-winning builder, Urban Trend Construction, goes bust owing over $1.5m