Advocate calls for investigation into RGD Group collapse

A leading subcontractor advocate says the collapse of major builders has a ripple effect on entire economies in regional areas.

Les Williams of the Subcontractors Alliance delighted a Palaszczuk Government will fund the public court examination under oath of people associated with the collapse of two Queensland building companies which left subbies exposed to the tune of $38m.

SUBCONTRACTORS Alliance head Les Williams says the collapse of major builders like RGD Group has a ripple effect on the entire economy in regional areas.

Mr Williams said the impacts were more far reaching than just the people on the tools.

"We've just had one other recently go under that was doing a lot of work for the council," Mr Williams said.

"It affects the whole Sunshine Coast economy.

"It affects all the people who deal with the subcontractor. It flows on down the line."

COMPANY'S STRUGGLES PRIOR TO COLLAPSE REVEALED

RGD Group Pty Ltd and RGD Constructions Pty Ltd were placed into voluntary administration with FTI Consulting late last week.

Mr Williams said subcontractors in effect supplied materials and labour, the builder did little in terms of actual construction.

RGD buildings.RGD office

Mr Williams said there had been 67 builders go under since the high-profile collapse of Walton Constructions in late-2013 and early-2014.

He feared subbies who may have been paid by RGD Group or RGD Constructions before they collapsed may get stung again and forced to pay the money back if it was identified as a preference payment in any investigation carried out by administrators or future liquidators.

He said he thought the RGD Group collapse "should be investigated".

"To me it's no different to the 66 before it," Mr Williams said.

'WE'RE NOT BANKS': SUBBIES BURNT BY MAJOR BUILDER COLLAPSE

He said it was the smaller hardware and paint stores and other smaller scale suppliers who were often burnt by the effects of a collapse like RGD Group on subbies.

"They all feel it," Mr Williams said.

"It's just a shame for the small businesses and suppliers.

"The subcontractors, they really need to find out what their rights are."

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