Comlek wins $380k Mackay council project to upgrade sewage network
The company is in administration, but the council is confident the besieged company can still deliver a $380,000 project.
Business
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The embattled Comlek Group will take on a new council project even as it navigates the uncertain waters of voluntary administration.
The council awarded the electrical and engineering services firm a $380,000 tender on November 23 to upgrade part of Mackay’s sewage network but on December 5, the company entered into administration after it was walloped with a $10m bill for allegedly unpaid payroll tax dating back to 2010.
Mackay Regional Council acting director for organisational services Anthony Bigby said the council was confident Comlek could nonetheless fulfil its obligations.
“The contract is for SPS (sewage pump stations) regional telemetry upgrades FY22/23 to the value of $379,886,” Mr Bigby said.
“A pre-start meeting occurred last week and it is anticipated that Comlek Group will deliver the work as planned.”
The Queensland Revenue Office issued the company with the $10m claim last month, but Comlek director Michael Donaldson has pledged to file an official complaint.
“We have gone through some of the documentation and we feel there have been miscalculations on the assessment from the Queensland Revenue Office,” he said.
“It is incorrect.”
Administrators Andrew McCabe and Joseph Hayes from Wexted Advisors will run the company in the interim.
“The company appears to be trading well and it is just that you have been lobbed with a $10m claim,” Mr McCabe said.
“Absent the Queensland Revenue Office claim, the company is trading profitably.”
Comlek has completed other projects for the council in the past but does not have any other council projects on its books at present.
Comlek beat out competitor Alliance Automation for the sewage upgrade job.
Alliance put forward a price of $528,000.
According to MRC documents, Comlek’s experience and clear project outline helped seal the win.
“Comlek Group has demonstrated its experience, capacity and resources to be able to complete the works to the quality as specified in the request for quotation document,” the November 23 agenda states.
“Its project methodology and construction program submitted demonstrate its understanding and ability to complete the works within the required time frame to the required standard.”
Mr McCabe said a meeting this Thursday would provide creditors with an update of the administration.
A second meeting in January will determine the future of the company.
The company’s directors will propose a deed of company arrangement that would allow the company to continue to trade and preserve all employees and their entitlements.
Creditors and employees will vote on whether to accept the proposal.
The QRO is Comlek’s largest creditor.
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