Zadro Construction: Sub contractors speak out after western Sydney builder goes into administration

Former subcontractors, who are owed money by a western Sydney builder facing administration, fear they will be left high and dry by the folded company. Read their stories.

L: A worker on a Zadro construction site, R: Volcom Electrical owner Joel Austin

Small business owners, previously contracted on jobs with a folded construction company from Sydney’s west, are demanding answers from the builder amid fears they’ll be left high and dry.

Penrith based builder, Zadro Construction announced it had entered voluntary administration last month, with Grant Thornton Australia being appointed administrator on September 15.

The shock announcement sparked panic from sub-contractors who’d worked with the builder, yet to be paid.

Joel Austin, says his company Volcom Electrical was subcontracted with Zadro for a decade, working on jobs including Hyde Park Barracks, Sydney Living Museum and St Aidan’s Church.

Prior to the announcement, Mr Austin said communication broke down as more and more creditors requested payment from the company.

“They weren't answering calls, employees started leaving, when so many contractors are ringing for money, something’s not adding up,” he said.

Mr Austin issued requests for an outstanding $77,000.

The next day, Zadro announced their imminent administration.

Following the news, Mr Austin became concerned he and fellow subcontractors “would be left high-and-dry”.

Zadro Construction has gone into administration. Source: Instagram

Another subcontractor, Samuel Wilton, who alleges his business, Platform Joinery, is owed $118,000 by Zadro, said his team was working “14-15 hours a day to get the work done, going hell for leather” only to not yet be paid.

Mr Wilton has joined a committee of inspectors along with Mr Austin, to demand answers from Zadro about the company’s finances prior to going under.

Roofer Brad Hocking, whose business Right Choice Roofing is listed as a creditor, claims he is owed $107,718 by Zadro, which he has been “chasing for about 3-4 months”.

“This affects my business cash flow by so much, forget making a profit, I paid for the material and labour for a government-funded job, which is now finished yet I haven’t been paid,” he said.

Joel Austin from Volcom Electrical at work

Adam Henson, whose business BRH Steel worked with Zadro for 27 years, claims he is owed $535,000 and says “it’s hard to believe they would treat their subcontractors like this.”

“There was a lot of trust built up with them, for us we are not some big business, we are family-run, so $535,000 is a massive amount to lose,” he said.
When approached for comment, the company directed the questions to Zadro’s voluntary administrator.

In a statement, Cameron Crichton, from Grant Thornton Financial Advisory, confirmed the businesses of Mr Austin, Mr Wilson, Mr Hocking and Mr Henson are listed creditors but were unable to comment on the amounts they are each owed due to a review being undertaken.

“A report will be issued to all creditors on or around (October 13), which will provide details of our ongoing investigations into any recoveries available, including debtors, voidable transactions and any equipment, the report will also provide an estimate of any expected return to unsecured creditors.” The statement said.