Jett Building and Construction in liquidation, owed $2.5m for work in the Shoalwater Bay expansion project director Brett Dixon claims

A collapsed Central Queensland construction company claims it is owed millions for work on a major Defence project and that more business could fail unless that money is paid. But the managing contractor has hit back with claims of its own.

A Central Queensland construction firm that claims it is owed $2.5 million for work on the Shoalwater Bay remediation project has filed for liquidation and claims others could follow suit.

But three days on from the company being placed in liquidation, the managing contractor of the Shoalwater Bay project, Downer FKG, has denied these claims and states the company was paid.

Jett Building and Construction (JBC), which is headed by director Brett Anthony Dixon and has offices at Arthur Street, Yeppoon, employed about 15 permanent staff and another 14 casuals at the time of liquidation.

The company formally went into liquidation on Monday (September 27) with Michael Beck and Morgan Lane of Worrells Solvency and Forensic Accountants appointed as liquidators.

“Whilst not the company’s only contract, its records indicate that JBC may be owed amounts of approximately $2.5 million in respect of the Shoalwater Bay project and we understand that the non and delayed payment on this project resulted in the liquidation of the company,” Worrells Rockhampton partner Michael Beck sid.

It is estimated at this stage JBC owes trade creditors about $1.9 million and it is understood the list of creditors could exceed 100.

Joint venture Downer FKG was awarded the $135 million managing contract for the delivery of the Shoalwater Bay Training Area remediation project in March 2020.

Located 80kms north of Rockhampton, SWBTA is the Australian Defence Force’s primary training area for large-scale, joint-force military training exercises.

The project scope includes a new 1,000 troop urban operations training facility, field hospital site and military campsite, upgrades and remediation to an airfield, internal roads, creek crossings and beach landing sites with the establishment and operation of two construction camps to support the works.

This publication reached out to Downer FKG when the liquidation was announced and received no reply.

On Wednesday, a new response was sent from Downer.

“The Downer FKG joint venture manages the Shoalwater Bay Training Area Remediation Project on behalf of the Department of Defence,” the statement read.

“Jett Building and Construction’s contracts in relation to this project were terminated five weeks ago.

“Jett Building and Construction has been paid in full for all the work it has completed on the project to date.”

However, statements from the liquidators and JBC director Brett Dixon contradict these claims.

Worrells stated the company had a five-year trading history in the Central Queensland region and its recent contracts included work for Downer FKG on Defence’s expansion of the Shoalwater Bay training facility north of Rockhampton.

“The liquidation is in its infancy, and the Worrells CQ team is assessing the company’s financial position and endeavouring to realise the company’s assets which includes amounts owing on the Shoalwater Bay project,” Worrells Rockhampton partner Michael Beck said.

Mr Dixon shared his sentiments of the emotional and physical drain the past couple of days had on him personally.

Terminating his 31 staff on Monday was “one of the toughest things” he has had to undertake.

“These people are all loyal employees and have families to support and are now without any income,” Mr Dixon said.

“The last few months have been extremely upsetting, stressful and frustrating for myself, my staff and their families, our creditors and all those who have supported us through this time.

“The coming days and weeks will continue to be emotionally demanding for all involved.”

A creditors list is yet to be released as the liquidation is still in its early days, however it is expected the list will include more than 100 creditors.

Worrells is calling for all creditors to lodge a proof of debt via its online portal at www.worrells.net.au.

“Our team is working through the process to get the best outcome possible for customers and creditors,” Liquidator Michael Beck said.

“We understand the impact that the appointment may have on affected parties and the community.

“We will continue to proactively communicate the stakeholders at each juncture of the liquidation.”

It is understood JBC was awarded contracts for concrete and carpentry by Downer/FKG joint venture for remediation works at the Shoalwater Bay Training Area.

“I have built my business on the back of supporting other local contractors and business owners and our inability to pay these local businesses is probably one of the hardest things to swallow,” Mr Dixon said.

“Local businesses supporting local businesses is what this community is built on,” Mr Dixon said.

“We are owed millions of dollars by DFKG for unpaid claims and variations on the Australian Defence Project at Shoalwater Bay and receipt of these monies would have seen creditors paid.

“The final decision to place the company into liquidation comes after many months of dealing with DFKG staff who made promises of payment, whilst still requesting us to undertake additional works.

“Unfortunately, the payments never came, whilst we continued to complete works so that DFKG reached their targets.

“The actions of DFKG are continuing today with other contractors owed thousands of dollars also and they too may be forced into liquidation due to non-payment.”

The Shoalwater Bay Training Area in Central Queensland.

“Whilst local businesses jumped for joy at the start of the project with the Federal Government’s promise of supporting local jobs and contractors the reality of the situation is now a loss of a company and its employees out of jobs, with creditors left without payment,” Mr Dixon said.

“During the previous months we have tried to gain support from local federal member Michelle Landry, who whilst meeting with us advised that “their hands are tied and there is nothing they can do further” as the Federal Government had contracted the project to DFKG.

“We have also been in contact with our local state members and the project management/contract administration to voice our concerns in relation to non-payment.

“Our concerns have also gone to the Defence minister Peter Dutton’s office with no response.”

Capricornia MP Michelle Landry was contacted for comment but was unable to provide a statement. Mr Dutton has also been contacted.

A statement was sent by Defence on Monday evening, deflecting responsibility of the alleged late payments.

“JBC were engaged by the managing contractor, Downer/FKG as a sub-contractor on the Shoalwater Bay Training Area Remediation Project. Defence has no direct contractual relationship with JBC.”

Shadow Minister for Defence and Victorian MP Brendan O’Connor sent the following statement.

“If the Federal Government is delaying or withholding payment on the Shoalwater Bay expansion project then that is concerning, and Labor will be seeking further details on this,” he said.

This publication has reported in recent months a number of Rockhampton business owners were frustrated some contracts for the project had not gone to established local businesses.

A Shoalwater Bay project update was held on Tuesday morning in Rockhampton, the morning after the news broke that JBC went into liquidation.

Air Commodore Sandy Turner, who has recently been appointed the Director General United States and Singapore programs at Australian Defence Force, was in attendance.

A Morning Bulletin reporter attended the event and was advised not to approach Commodore Turner.

The event was hosted by Advance Rockhampton and guests heard from Laing O’Rourke project director James Foreman and Downer/FKG joint venture project director Stewart Jackson, who both shared a presentation with imagery and videos of the projects and where they were up to.

Some questions were asked at the end of the event by a number of business people however there was nothing mentioned about JBC.