$14m debt: Major civil works contractor plunged into administration

One of North Queensland’s largest civil construction companies could be sold off as its administrators look to claw back more than $14 million owed to hundreds of creditors.

Hansen Constructions NQ’s Jacqui Murr with Stockland’s Andrew Astorquia and Gedoun Constructions' Joe Gedoun turn the first sod on North Shore's The Junction social and commercial hub in 2021. Picture: File.

One of North Queensland’s largest civil construction companies could be sold off as its administrators look to claw back more than $14 million owed to hundreds of creditors.

Mainscarf Pty Ltd, which trades as Hansen Constructions NQ, was last month plunged into administration with financial and tragic circumstances behind its demise.

The company, which describes itself as Townsville’s major civil works contractor, is directed by Jacqueline Frances Murr who oversees about 50 staff.

Michael Brennan and David Stimpson of SV Partners were appointed to take control of the company, allowing it to continue trading to enable it to complete nine major projects.

An administrators’ report listed a total of eight secured creditors are owed a combined $7.2m and more than 200 unsecured creditors that are owed about $7m.

The business has been in operation since 2003 and has done contract works for major developers including Lendlease and Stockland, and the state government.

Mr Brennan described the company’s woes as the biggest in Townsville since Clive Palmer’s Queensland Nickel collapse which left $200m debts and hundreds of job losses.

SV Partners is now preparing an expressions of interest campaign to potentially facilitate the sale of the business. It has already received inquiries about the opportunity.

In its report, SV Partners said the company had a “significant” fleet of equipment and a long operating history which presented a “unique” strategic opportunity for an existing operator to enter the market with a marked reduction in set up costs.

“They have built some really iconic developments, big projects, when you look strategically at Townsville, it’s a great strategic opportunity,” Mr Brennan said.

Mr Brennan said many of the creditors who had been left out of pocket were small businesses who could be at risk of folding in the future.

“Any small business that trades in this industry takes a risk, they work on trust, trust that they will get paid,” he said.

“Now they find themselves exposed to their own risk.

“Any dollar lost has a really detrimental impact on their business, on their families, on employees. The ripples from the stress is profound.”

One of the creditors owed nearly $10,000 said the company had been “bled dry”.

The creditor, who asked not to be named, said it would “definitely” impact on the bottom line of his business.

“It’s a kick in the pants, especially with the wet season,” he said.

The report said the once “well-respected” business that had strong demand right across North Queensland fell into strife for four key reasons.

SV Partner’s listed poor operational management of the business, poor cost control, delays to construction work due to weather conditions and the ill health of Mrs Murr’s husband David.

“Hansen Constructions, once a thriving entity in the civil construction industry, encountered financial difficulties due to an inability to manage a lack of skilled labour, escalating project costs, and limited tracking of resources,” its report read.

“The company’s dire situation prompted the need for voluntary administration to assess and address its financial woes.”

SV Partners engaged Advantage Project Solutions to take over the company’s project management and day to day operations allowing it to continue trading.

Some of its current projects include TAFE Pimlico, the Elliot Springs master planned community, the North Shore Development and works at Townsville Golf Club.

Hansen Constructions NQ was also the principal contractor behind the Fairfield Central shopping centre works, as well as developments including Haven at West End and Hampton Grove at Mount Louisa.

The Courier-Mail made several attempts to contact Mrs Murr for comment but was not successful.