Holding up a house of cards for troubled builder

DAVE Woolley is willing to stake his reputation and go into bat for the company that owes him $90,000

COLLAPSE: HJ Homes' building licence was suspended by QBCC on October 24 . Picture: Trish Bowman

DAVE Woolley is willing to stake his reputation and go into bat for the company that owes him $90,000.

HJ Homes' building licence was suspended by QBCC on October 24 for failing to satisfy minimum financial requirements. On November 26 it was cancelled at the company's request.

Mr Woolley, owner of CQ Truss and Frames, acknowledged he is among HJ Homes' largest creditors but believes its director Russell Humphrey, now trading as East Coast Building Solutions, will create enough cash flow to get back in the black.

Mr Woolley said he was running the "financial side of things” for East Coast but was not prioritising the money owed to him.

"Since the beginning of November we've knocked down what HJ owed to contractors from $147,000 to $49,000,” he said.

"Supplier debts have been reduced from $523,000 to $396,000 while continuing construction has brought in $630,000 in progress claims.”

Mr Woolley says he is doing something "that will benefit everyone” by running the company's finances according to old-fashioned principles.

"In the old days you paid your bills first and yourself last,” he said.

"If you ended up with only $10 in your pocket you learned your lesson. If you ended with $50,000 you gave yourself a pat on the back.”

Mr Woolley, who says the manager of HJ Homes/East Coast Building Solutions divulged all the records and books to him, believes he can whittle back its debts while keeping money coming in to employ staff.

He says the company will pay its fit-out costs first - including tiling, kitchen, doors and all materials - and use leftover profits to pay down debt.

"This is just really minor compared to JM Kelly and Metro builders,” he said.

It is understood Mr Humphrey had to gain clients' permission to reassign their works from HJ Homes to ECBS to continue construction.

A Morning Bulletin source, who is also owed money by HJ Homes, says he and others were contacted by Mr Woolley encouraging them not to submit insolvency paperwork.

Mr Woolley seems unconcerned with new Queensland Building and Construction Commission reform laws, which came into effect on December 17.

The QBCC laws against 'phoenix activity' state that anyone owed money by a contractor is urged to submit a monies-owed complaint.

"They lock us into laws about what we can and can't do,” Mr Woolley said. "If you look deeply into the QBCC policies, nothing's working.”

The Morning Bulletin has attempted to contact Mr Humphrey on several occasions without success.

The Bulletin's source has since lodged monies-unpaid paperwork with the QBCC.

A QBCC spokesperson said that "new information has prompted further investigation into Russell James Humphrey (QBCC licence 925362) and CQ Constructions Pty Ltd (QBCC licence 1313411) to ensure they're meeting licensing requirements”.

"While HJ Family Homes Pty Ltd (QBCC licence 1274774) is currently unlicensed, it is still registered with ASIC,” the QBCC spokesperson said.

"The QBCC can only take legal action to exclude directors involved in a company collapse once the company enters administration or liquidation.

"It is a requirement for QBCC licensees to pay their debts as and when they fall due, or they risk disciplinary action that could include licence suspension and/or cancellation.

"If anyone is owed money by a contractor, they are urged to contact the QBCC and submit a monies-owed complaint.”

Originally published as Holding up a house of cards for troubled builder