Sunshine Coast tradies left without pay as Lanskey Constructions liquidates owing $11m

Several Sunshine Coast tradies have spoken out after being left out of pocket following the collapse of a construction company that went bust with more than $11m worth of debt.

Construction industry players have been buffeted of late.

A Sunshine Coast tradie and dad is one of several local operators out of pocket tens of thousands of dollars after a major building company collapsed last month.

Australian Securities and Investments Commission registers showed Lanskey Constructions Qld Pty Ltd appointed FTI Consulting liquidators John Park and Ben Campbell on October 24.

According to the Courier Mail, the company founded by Melbourne Cup winner Paul Lanskey in 1986 was involved in large commercial projects across Australasia and had offices in Brisbane, Sydney, Melbourne, Perth, and Auckland, New Zealand.

A publicly available report by FTI Consulting shows the company owed about $11.2m to 282 creditors, including more than $250,000 to 10 creditors on the Sunshine Coast.

One of the local businesses was waterproofing service Shore Seal Waterproofing in Buddina, owed more than $28,000.

Construction firms have been hit hard in recent times.

Shore Seal Waterproofing director Christopher Burland said he contacted the company’s office in Sydney three weeks ago but didn’t hear a word.

“I don’t bother chasing them because it’s an absolute waste of time,” he said.

The Sunshine Coast dad, 57, said he wasn’t at risk of insolvency if he didn’t get paid but said it would put pressure on his cash flow, mental health, and family.

Mr Burland said he had been caught in the middle of several construction firm collapses, such as Sunshine Coast builder BA Murphy last year.

Mr Burland said small subcontractors were often left hung out to dry when caught in liquidations and he was critical of construction industry authorities.

Cadcon International Pty Ltd, a surveyor and town planner in Maroochydore, was owed about $983.

Cadcon International director Peter Carmichael said his business was “lucky” to have such a small amount owing.

Leading up to Lanskey Construction’s liquidation, he said he tried but failed to get a hold of the company regarding overdue accounts but said “no one wanted to respond”.

Lanskey Constructions Qld owed money to other local businesses, such as more than $4000 to Oncore Consulting Pty Ltd, $38,000 to Beverage Marketing Australia Pty Ltd, and $167,000 to Mantle Pty Ltd.

Lanskey Constructions Qld Pty Ltd founder Paul Lanskey.

Worrells Solvency and Forensic Accountants liquidator Paul Nogueira said a large liquidated company could trigger a domino effect where its trade creditors also had to fold if they couldn’t bear their losses.

He said there had been a noticeable uptick in insolvencies in the construction industry, underpinned by a rise in supply costs, a lack of tradies, and challenges getting materials, delaying projects.

Mr Nogueira said more collapses, especially for small companies, were on the horizon next year as the Australian Taxation Office looked to ramp up its debt collection.

He said there had been a huge spike in money owed to the tax office, saying debt owing to it rose from $36bn to $66.2bn from 2017 to this year.