‘We’re not banks’: Subbies burnt by major builder collapse

Subbies caught in the latest collapse of a major Coast builder say they’re sick of being treated like banks as they prepare to fight for life.

RGD buildings.The Rhythm on Beach, Maroochydore

SUBBIES caught up in the latest collapse of a major Coast builder say they're sick of being treated like banks.

Subcontractors were left in limbo after RGD Group Pty Ltd and RGD Constructions Pty Ltd were placed in voluntary administration with FTI Consulting late last week, after RGD Group director Ron Grabbe revealed several factors which led to the collapse.

DYFA Plumbing owner Dylan Fahey said there'd been issues for about six months with debts he was owed by the companies.

CONSTRUCTION BOSS SPEAKS AFTER COMPANY COLLAPSE

He said he went to the Queensland Building and Construction Commission about it, but nothing was done.

"So many subbies are going to be stung," Mr Fahey said.

He said he was owed about $60,000, that figure partly from RGD's The Rhythm on Beach project at Maroochydore.

Klint Grabbe and Ron Grabbe of RGD Group have purchased an oceanfront site on the corner of Bokarina Boulevard and Longboard Parade at the new Bokarina Beach for a luxurious $70million beachfront residential and retail development.

He said it was frustrating, with 70 people working for him, that he was still in a position where he ended up with "all this unsecured debt".

"We're not banks," Mr Fahey said after the latest in a series of building company collapses.

"We're mum and dad businesses wearing all this unsecured debt."

Native Coatings owner Dorian Smerdon and his crew of 10 painters were also caught up in the collapse.

Mr Smerdon said he was owed about $150,000.

"It's pretty hard to get out of it," he said.

COMPANY'S STRUGGLES PRIOR TO COLLAPSE REVEALED

Mr Smerdon said he would have to try and "trade my way out of it", not easy with $35,000 worth of materials to pay for at the end of the month and a weekly wage bill of about $15,000.

He said his debts included retention for The Rhythm on Beach, and "about $110,000" owed from work on the Virtuoso project in Brisbane's West End.

He said he'd been paid $70,000 about a month ago, but still had invoices from late last year that were unpaid.

After several visits to RGD Group offices Mr Smerdon said he was told they would pay $100,000 worth of invoices, but soon after, he was told to chase it up with Mr Grabbe directly, as the company was now operating as Clark Group Constructions.

"It's a big blow to take when you're just starting out," Mr Smerdon said.

"I've got to pay my men and I've got to pay for the materials. If I don't pay my bills I'm going to look like the bad bloke."

FTI Consulting's John Park at his Brisbane office. Pic Peter Wallis

He said McNab had heard about his situation and fast-tracked their payments to him for work on their Bokarina site, which had helped.

A Queensland Building and Construction Commission spokesman confirmed there had been nine moneys-owed complaints against RGD Group Pty Ltd, totalling more than $150,000, received this year, with "a number" related to the same Virtuoso Apartments project in Brisbane's West End.

A spokesman for FTI Consulting said it was too early in the administration process to comment on the matters, while the financial situation of the companies was being fully investigated.

A creditors report detailing any debts owed was yet to be finalised.

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