SV Partners report says Gold Coast 62 construction companies on brink of failure as subbies urged to contact taskforce

More than 60 Gold Coast construction companies are on the brink of collapse, as a taskforce formed to tackle systemic problems in the industry urges subcontractors to contact them with complaints.

Some parts of the building industry have been in the spotlight for the wrong reasons.

MORE than 60 Gold Coast construction companies are on the brink of collapse, as a taskforce formed to tackle systemic problems in the industry urges subcontractors to contact them with complaints.

Data from insolvency group SV Partners found while Gold Coast businesses overall were less likely to fail now than six months ago, 62 construction companies faced financial ruin.

The SV Partners Commercial Risk Outlook Report for March found 385 local businesses were at risk of insolvency in the next 12 months, or 2.7 per cent of local businesses, down from 3.2 per cent in October and 3.4 per cent this time last year.

SV Partners Director Matthew Bookless said while there were still significant risks facing Gold Coast businesses, the outlook was improving.

“Things are looking up for local business owners, with recent good news regarding the city council’s upgraded credit outlook a consequence of projected economic growth in the region,” he said.

“There is significant infrastructure on the way for the region, including the extension of the Gold Coast light rail, the Gold Coast Airport upgrade and, a little further down the track, infrastructure associated with the recent SEQ city deal.

“This is good news for the local economy, but maybe too late for the 62 construction businesses at high to severe risk of insolvency, who will need to radically improve their solvency positions if they hope to benefit from these major pieces of investment.

“The recent spate of high-profile construction collapses has left thousands of unpaid subcontractors struggling, which just goes to show the significant flow-on effect of an insolvency in the construction industry.”

Matthew Bookless, Gold Coast director SV Partners. Picture: John Gass

SUBSCRIBE TO THE GOLD COAST BULLETIN — JUST $1 FOR THE FIRST 28 DAYS

Following the statewide Back Our Subbies campaign by News Corp Australia, the Queensland Government announced former Supreme Court Justice John Byrne would lead a joint taskforce probing allegations of subbie rip-offs in the building industry.

Les Williams, of advocacy group Subcontractors Alliance, said subbies finally had the chance for their cases to be heard — and they should take it.

“This is their chance to come forward and have their grievances heard and assessed,” he said.

“It’s important because, as the Gold Coast Bulletin as reported, there’s been 7000 subcontractors affected and that has had some devastating impacts on families.

“The only way that we’re going to get to the bottom of this is to go to the taskforce.”

Les Williams of Subcontractors Alliance. Photo: Brett Wortman

Mr Williams said he’d met with members of the taskforce who were concerned some subbies would not lodge complaints for fear of intimidation or retribution from big builders.

“These matters needs investigation, but they can’t be investigated if subbies don’t make a complaint,” he said.

“Every complaint will be confidential and any face-to-face meetings will be confidential.

“We can’t bring these people to account unless we stand up and make a complaint.

“This is your opportunity to go in there and make yourselves heard, confidentially.”

Submissions to the taskforce will be accepted at www.qld.gov.au/specialjointtaskforce up to 5pm Friday, May 17, 2019, with a final report and recommendations due to State Government by June 30, 2019.

Originally published as SV Partners report says Gold Coast 62 construction companies on brink of failure as subbies urged to contact taskforce