Building sector collapse impact on construction workers revealed

The next two years are shaping up to be brutal for subcontractors, with claims they have been left caught in the lurch of a troubled industry facing serious issues over the next two years. Read what they had to say:

Subcontractors are essentially working “for nothing” thanks to price hikes and material shortages that could still impact the industry for the next two years, a Gympie region woman has claimed.

Companies included Brisbane-based Privium, which went into liquidation in mid-November and Sunshine Coast-based company BA Murphy Constructions which suffered the same fate the following month.

According to the QBCC, Privium’s collapse left 39 families across the Gympie region, Fraser Coast and Bundaberg hanging in the wind, including Hervey Bay couple Nikki and Daniel Jacobson.

Rising material costs and shortages due to Covid and companies forced into liquidation for failing to meet financial requirements.

Gympie region woman Sharon Weller said homeowners were not the only ones struggling saying it was out of contractors’ hands whether a house was left incomplete due to the sector collapse.

Hervey Bay couple Nikki and Daniel Jacobson were left $80,000 out of pocket after Privium downed tools on their block and left a pile of timber on their acreage property. Photo: Paul Beutel

In a comment left in response by a request for any Wide Bay residents affected by these collapses to contact The Gympie Times, she said subbies’ hands were tied.

“Rising material cost and extreme shortage in the middle of a contract means the builder and subbies are working for nothing and generally owe money to suppliers due to the signing a contract prior to Covid,” she said.

“No decent builder wants to leave their client in the lurch, no builders want to owe money at the end of a build and end up paying out of their own money, no builder wants to work for four months for free.”

She said a lot of builders have gone broke as a result of the collapse, with countless others struggling to come to terms with the situation mentally.

The Gympie Times has reached out to Ms Weller for further comment.

Administrators have taken over Privium Homes., which collapsed owing more than $80m. Pics Adam Head

On top of the businesses being forced into liquidation, the QBCC came under fire in November for suspending 2640 contractor licences', most of which were small business owners, for “failure to comply with minimum financial requirements’’.

By contrast a similar action was taken against just 66 contractors in the 2020/2021 financial year.

Master Builders Queensland deputy chief executive Paul Bidwell told the Australian Business Network on December 26 Queensland should expect more company collapses as building material costs continue to rise.

He said the supply chain issues could even run into 2023.

“There are a lot of nervous builders out there and the first quarter of next year will be telling,” Mr Bidwell said.

If you have been affected by the collapse of a construction company in 2021 and are a Wide bay resident, The Gympie Times would like to hear from you. Please email [e-mail]