Subcontractors cop it again as liquidator appointed to Batir Pty Ltd

SUBBIES could be out of pocket more than $2 million after the collapse of a building company employed on State Government public housing sites.

A liquidator has been appointed to Brisbane-based company Batir Pty Ltd.

SUBBIES could be out of pocket more than $2 million after the collapse of a building company employed on State Government public housing sites.

A liquidator was appointed to Brisbane-based company Batir Pty Ltd late on Thursday. It has been placed under external administration.

Government tender documents reveal Batir had at least nine government contracts last year valued at almost $6.4 million, including social housing projects at Burleigh, Tugun and Labrador.

The State Opposition has questioned the due diligence undertaken by the Government on the company as subbies call on the department to repay their debts.

The Government won support from subbies when it launched an inquiry this month into more than $18 million owed by the Cullen Group on the Robina Boheme site, but is embarrassed by its own financial disaster.

A tradie on the Subcontractor Alliance page on Facebook said their business had been chasing payment of $40,000 since Christmas and was owed a total of $90,000 from two other companies.

“Twenty years we have built our business up through literally blood, sweat and a lot of tears and I’m done. I can’t take anymore emotionally,” the tradie said.

Another subbie posted: “come talk to my children and see if they (sic) happy in a broken up family … death would be the easy excuse”.

The downside to the booming construction industry is many subcontractors are owed money.

Acquire Trade Credit business development manager Nathan Wrobel, who provides advice on credit management solutions, said the early indications from insurers “show a possible loss of $2 million”.

“We estimate that only 10 to 20 per cent of the Gold Coast construction industry is insured meaning uninsured losses could be considerably more,” Mr Wrobel said.

Some tradies could claim 90 per cent of their loss but others faced no returns if their insurers had indicated they no longer traded with Batir.

Housing and Public Works Mick de Brenni has built up strong partnerships with subbies wanting reforms to the payment system but his Government is under pressure to pay those owed money on government run sites. Photo: David Clark

Minister for Housing and Public Works Mick de Brenni last night said he suspended payments to Batir last week and took back possession of all sites after being told of their position.

“I encourage any subbie who is owed money from Batir Pty Ltd … to seek independent legal advice which might include … lodging a subcontractor charge and to contact the Queensland Building and Construction Commission on 13 93 33.”

Mr de Brenni said the situation further highlighted the need for reforms.

A tradie who worked on the Burleigh site said the 11 apartment block public housing complex was scheduled to be finished before Christmas.

“Work ground to a halt a few weeks before Christmas and since then various tradesmen have attended and retrieved what they could,” he said.

Subcontractors Alliance spokesman Les Williams said the emotional response from subbies showed many were prepared to quit the industry.

Opposition housing and public works spokesman Stephen Bennett questioned what due diligence was completed by the department on Batir before signing off on government contracts.

Originally published as Subcontractors cop it again as liquidator appointed to Batir Pty Ltd