Cooroy’s DECS, AK Group Qld react to BA Murphy Constructions collapse

Two creditors caught up in the BA Murphy Constructions liquidation after its $19m collapse have revealed the effects on their businesses and lives. SEE THE FULL CREDITORS LIST

Two creditors caught up in the BA Murphy Constructions liquidation have revealed the effects on their businesses and lives.

A commercial carpenter who lost more than $93,000 when a major builder went bust has revealed the effects on his business, while another creditor claims the liquidation affected “every part” of his life.

Sunshine Coast-based BA Murphy Constructions Pty Ltd folded in December 2021, when FTI Consulting’s John Park and Ben Campbell were appointed as liquidators.

The initial scale of the collapse of the major building firm and its NSW and Victorian arms – sparked by the effects of Covid on the construction industry – was listed as about $11m, but later revised to north of $19m as liquidators’ investigations progressed.

A report to creditors showed commercial carpenter Dale Emery lost more than $93,000 when the builder went bust.

The owner of Dale Emery Carpentry Services, better known as DECS, said a “hellish” 18 months of cash flow for the business followed.

Dale Emery was stung in the BA Murphy liquidation to the tune of more than $93,000. Picture: Patrick Woods.

He dealt with not only the BA Murphy Constructions liquidation but another builder’s liquidation in that time.

He said he was one of the “lucky ones” following the BA Murphy Constructions liquidation.

“We were able to get back on the job site for the new builder, a lot of the money was paid back to us through a new contract,” he said.

“We still haven’t got all of it, and obviously cash flow wise it was horrendous to get through.”

The Cooroy-based business owner said he had to dip into money saved for taxes to help his business stay afloat.

He has owned DECS for about 12 years.

BA Murphy Constructions Pty Ltd folded in December 2021.

He said he had complained to the Queensland Building and Construction Commission about BA Murphy prior to its liquidation, but as soon as liquidators took over the business the QBCC could not help.

“The QBCC walks away as soon as a liquidator is involved,” Mr Emery said.

He said there were few places subcontractors could turn to for help.

A QBCC spokeswoman said the Commission administered the most robust mandatory annual financial reporting system for building industry licensees in Australia.

“Anyone who believes they are owed a debt by a current QBCC licensee that is due and undisputed should lodge a monies-owed complaint with the QBCC,” she said.

A Queensland Building and Construction Commission spokeswoman said anyone who believed they are owed a debt by a current QBCC licensee should lodge a complaint. Picture: File

“Disputed payment claims can be lodged with the QBCC adjudication registrar for assessment.”

The spokeswoman said in the 2021-22 financial year, the QBCC helped building industry creditors recover $4.73m through the monies-owed complaints process and facilitated the awarding of $15.85m through the adjudication process.

“The QBCC’s monies-owed complaints process is an effective method for providing protection when money is owed by a licensee because all QBCC licensees must comply with minimum financial requirements including requirements concerning the timely payment of debts,” she said.

“However, when a company surrenders or has their licence cancelled, such as when an insolvency occurs, the QBCC can no longer enforce financial requirements which apply to current licence holders only.”

She said when that happened they recommended people contact the liquidator to discuss their debt or lodge a proof of claim and said some may with so consider obtaining independent legal advice.

Mr Emery said if the government brought in project bank accounts across all contracts that would help.

Dale Emery says project bank accounts across all contracts would help subcontractors. Picture: Patrick Woods.

Project bank accounts require funds to be held in trust accounts during a building contract but currently are only required for certain builds.

Mr Emery said that subcontractors were dealing with the constant threat of builders “falling over” despite the availability of many jobs.

“In this climate at the moment it should be good,” he said.

“It’s easy to get work at the moment and we’re not having to lower our prices to work.”

When BA Murphy Constructions collapsed, the Sunshine Coast-based AK Group Qld was owed more than $30,000, the liquidator’s report to creditors states.

An AK Group Qld spokesman, who did not want to be named, said the situation with BA Murphy Constructions had affected every part of his life.

Days before Christmas 2021, the spokesman found out he would not get paid.

“In a business sense it affects cash flow and the bottom line and personally it rattles your whole sense of why we’re doing the job and creates unnecessary stress that goes through the family,” the spokesman said.

“It’s what kills small business, we’re not a big-tiered company where the loss goes to a different department.

“It hits me directly.”

The spokesman said it had changed his outlook on the industry “for the worst” and he would deal with late payers in the future differently.

The Sunshine Coast Daily contacted BA Murphy Constructions liquidator FTI Consulting and the liquidator said there was no new information to release at this stage.

Last month the liquidators had issues a notice via the Australian Securities and Investments Commission advising they were preparing to declare a first and final dividend to BA Murphy Constructions creditors in mid-June.