Subbies United says Privium’s collapse will leave a ‘horrendous’ toll

Queensland building giant Privium Group has officially collapsed with debts expected to be more than $28m and at least 160 projects left unfinished across Australia.

Administrators have been appointed to Queensland-based building giant Privium Group which had left unfinished houses around the country.

Privium on Wednesday appointed John Park, Joanne Dunn, and Kelly Trenfield, of FTI Consulting, as voluntary administrators over a number of companies in the group, effective immediately.

The administrators said they would conduct an independent assessment of the financial position of Privium and seek to make a recommendation for the company that was in the best interest of the creditors and stakeholders.

“The administrators are mindful Privium is contracted to build a large number of residential homes in various stages of construction,” FTI said in a statement. “People who have entered into contracts for these homes will have understandable concerns.”

The administrators will work closely with the regulators in Queensland, New South Wales and Victoria to ensure individuals receive assistance and, if appropriate, have their properties completed by an alternative builder.

The administrators will provide an update at a creditors meeting expected in late November.

The failure of Privium, one of Australia’s largest home builders, has taken a “horrendous” toll on subbies who have been waiting for millions of dollars in payments, according to a sub-contractors organisation.

Subbies United director John Goddard said he had been contacted by tradespeople from across the country caught up in chaos surrounding Brisbane-based firm Privium Homes earlier this month walking away from more than 160 unfinished houses leaving debts expected to be more than $28m.

Privium Group’s founder Rob Harder. Picture: Nigel Hallett

Mr Goddard said traffic on his website has spiked with sub-contractors and others impacted by Privium Group’s shut down sparking fears the company was on the brink of collapse.

“A secured creditor told me they were owed a fortune and I think everyone is just waiting,” he said

“It’s horrendous. Subbies lose their homes because of this type of thing. Relationships break down. Family units often get destroyed.”

The website of Privium Group, which also trades under the Impact Homes brand, has also been closed.

The looming failure of one of Australia’s largest home builders has taken a “horrendous” toll on sub contractors.

Mr Goddard said the situation has impacted on subcontractors from virtual one and two person operations those large companies with a number of employees.

“We are talking in the tens of millions here,” he said

“There’s no recourse at the moment. If they’re owned money and its overdue I have been telling them to go to the QBCC (Queensland Building and Construction Commission) and submit a monies owed complaint to trigger an financial audit into the company,” he said.

“There is not much people can do anyway. I think it’s too late.”

A sub-contractor in Geelong, who is owed about $20,000, told Newscorp that it will “hurt a lot of trades” coming into Christmas.

“I don’t expect to see that money again,” he said.

“Someone was allowing us to keep working, knowing that I wasn’t going to be getting paid.

“I have a feeling that no one knows, and we are talking about a lot of homes. A lot of people are going to lose a lot of money.”