Tradies ‘peeved’ as another builder goes bust

Sub-contractors are fighting to survive after the franchisee of building giant GJ Gardner was put into liquidation, owing thousands of dollars.

The Ipswich franchise of building giant GJ Gardner is being wound up.

THE Ipswich franchisee of building giant GJ Gardner is being wound up leaving 14 homes unfinished in the latest bad news for tradies in the struggling construction sector.

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Liquidators Worrells were appointed to TP Enterprises Aotearoa, trading as GJ Gardner Homes Ipswich, on Wednesday with the firm owing subcontractors an estimated $200,000.

G.J. Ipswich’s customers and contractors were informed last week of the development.

GJ Gardner Homes at North Ipswich.

The businesses operates under the banner of the 35-year-old GJ Gardner Homes company, which has turn over in excess of $1 billion and operates in the US and New Zealand.

TP Enterprises Aotearoa director Pieter Burghout operates the business with partner Te Amo and claims more than 25 years’ experience in the building industry. Mr Burghout was not available for comment this morning.

Design-All Cabinets owner Richard Jones, who is owed about $80,000 by the company, said it was not the first time he had been burnt in a building company collapse.

The sign on the door of GJ Gardner Homes at Ipswich.

Mr Jones said he is still owed about $40,000 by Bloomer Constructions, a Brisbane building company that went under about two years ago.

“I’m a bit peeved,” he said.

“(They were taking) payments for fix out claims and we weren’t seeing any money.”

Mr Jones estimates he finished up to 30 homes for G.J. Gardner last year.

Now he is not sure whether the business will survive.

“I don’t even know if I’ll scrape through yet,” he said.

“We are just trying to move along, steady as she goes. I am out ready to walk away.

“It’s the way the industry is set up — you only have a 50/50 chance of getting paid.”

Mr Jones said electricians and plumbers were owed money, and believed a concreter was owed about $160,000.

“They’re in the same boat,” he said.

“Basically there’s a lot of outstanding money.

“He’s gone into liquidation so the chances of us getting any money is very very slim.”

Mr Jones cornered Mr Burghout in G.J’s office on Wednesday.

“I said to him why did you get all these jobs put in full knowing you didn’t have the money?”

“First thing he said to me was sorry.

“Sorry doesn’t cut it.”

At least one customer who has paid out more than $100,000 for the final fit-out of their new home has been left with nothing.

They were due to move into the home in the coming months but it has been left unliveable.

The customer said they knew of a number of subcontractors who had done work and not been paid since as far back as October last year.

GJ Gardner Homes QLD/ NT general manager Eddie Kimmerly said he had met with clients and contractors to inform them of the current status of GJ Gardner Ipswich.

“There are 14 homes under construction that require works to be completed and we are assisting each client through the process to ensure their build is finished as soon as possible,” said Mr Kimmerly.

“We are assessing all jobs and, where possible, will ensure the build is completed by neighbouring G.J. Gardner Homes builders, reducing the impact on clients and contractors.

“We acknowledge and appreciate the consideration customers and contractors are displaying as we work through the situation.”

The company’s troubles are the latest in a long line of insolvences in the building sector.

Maroochydore-based Lusso Concepts went into liquidation earlier this week owing more than $250,000 and leaving homes unfinished.

They join more than 1400 companies in the state’s construction sector that have failed in the last five years.

Queensland’s peak building body has warned of a challenging year ahead for the sector.

Master Builders Queensland said the latest Australian Bureau of Statistics figures showed a 2.1 per cent drop in building approvals in the year to November 2018.

Master Builders Queensland deputy chief executive Paul Bidwell said it was an increasingly grim story across all of the state attributable to tighter lending rules. “The GJ Gardner name may be big but it will depend on what work they took and whether they get paid,” said Mr Bidwell. He said the situation had not been helped by the State Government reducing the first home buyers’ grant last year by $5000 to $15,000. “We pushed for the $5000 to be retained but weren’t successful,” said Mr Bidwell.

The Queensland Building and Construction Commission said it suspended the licence of TP Enterprises Aotearoa and had been in contact with GJ Gardner Homes and the liquidator to discuss a way forward for homeowners.

A spokesman said it also was contacting affected owners to explain the process of lodging a non-completion claim for assessment under the Queensland Home Warranty Scheme.