Metricon Homes subcontractors say they have no issues with payment amid insolvency rumours

Subcontractors of Metricon Homes are baffled by rumours of cash troubles at the company, saying they have all been paid and are happy to keep working with the national builder.

Subcontractors have taken the unusual step of defending a major builder, backing Metricon Homes in the face of insolvency rumours.

Australia’s largest low-rise builder has categorically denied it is facing collapse, as staff mourn the sudden death of the company’s founder and CEO.

Mario Biasin died unexpectedly on Monday, after suffering mental health issues.

John Goddard, of advocacy group Subbies United, is used to going after big builders at the mere suggestion it could leave his members in the lurch.

But in this case, he said, it would be “a self full-filling prophecy caused mainly by bad publicity” if Metricon did go into administration.

Mr Goddard said there was no evidence of unpaid subcontractors and no whispers the company had sought pre-insolvency advice.

“I have not heard of one subcontractor who has not been paid on time by Metricon. Not one,” he said in a note to members.

“Another phenomenon of the times is cancelling people, in this case its cancelling Australia’s biggest builder.”

Long-time Metricon subbie Stefan Styles, of Yatala company Civic Shower Screens, was baffled by the rumours.

“I’ve done work for them for the past seven years and they’ve always paid on time, they’re always good with dispute resolution - they’ve been very good to work for,” he said.

“I think it’s a bit unfair to single them out when they haven’t done anything wrong, and it could be very detrimental for their business.”

‘Simply no basis to these rumours’

May 20, 2022: Australia’s largest low-rise builder Metricon Homes has categorically denied it is facing collapse, as staff mourn the sudden death of the company’s founder and CEO.

Metricon confirmed Mario Biasin died unexpectedly on Monday, after suffering mental health issues.

Gold Coast Suns CEO Mark Evans joined leaders from across the country to offer their condolences.

Mr Biasin supported the fledgling AFL side since it was established, with Metricon holding naming rights for the team’s Carrara stadium until the end of this year.

Metricon director Queensland Jason Biasin, Gold Coast Suns coach Stuart Dew and Suns CEO Mark Evans among players during the announcement in 2019 about ongoing support for the Suns from Metricon and to open the new Terrace viewing area. Picture: Tim Marsden

“Mario was a wonderful person, talented businessman and great supporter of sport in Australia,” Mr Evans said.

“He instilled his family’s values into Metricon Homes and engendered loyalty and respect from his many staff, business associates and partners.

“Mario and the Metricon team have supported the SUNS since our inception and now it’s our turn to support Metricon and the Biasin family as they navigate through these unfortunate and trying circumstances.”

The future role of Mr Biasin’s son Jason, who lives on the Gold Coast and runs Metricon’s Queensland arm, is yet to be determined.

Queensland Building and Construction Commission records show Metricon performed $404m of work in Queensland in 2021-22, slightly down from $504m the previous year but well above the $247m recorded in 2019-20.

The company does not have any recorded breaches of minimum financial reporting, nor is there any evidence of wind-up or other court action against Metricon in Queensland.

Metricon is Australia’s largest home builder. Picture Dean Martin

The company was in the spotlight in March, after it sought to renegotiate building contracts where initial time frames had run out, in response to rising costs.

It issued a memo to staff addressing “malicious rumours” about the company’s financial stability, dismissing them as “false”.

Acting CEO Peter Langfelder on Wednesday repeated there was no basis to widely-circulated reports the company had been trying to push for more deposits or attempting to alter contracts to help with cash flow.

“There is simply no basis to these rumours. Metricon is a strong viable business without any solvency problem,” he said.

The construction industry is facing challenges on multiple fronts, as rising supply costs meant many contracts are becoming unprofitable before building even begins.

The squeeze had seen major commercial builders ProBuild and Condev collapse in recent weeks.

Dismissing the reports again on Thursday, Mr Langfelder said they had come at “an extremely difficult time” as staff grieved the loss of Mr Biasin.

“We’ve got a strong history of performance, all our contracts in place are profitable, we’re completely up to date with all our trades, our suppliers, our employees, commissions, everything is completely up to date,” he said in a media conference.

“In terms of our business, it’s just business as usual.

“Our business has been very strong for 45 years and will continue to for a long long time to come.”

Metricon director Peter Langfelder, late CEO and founder Mario Biasin, South Australian general manager Richard Bryant and director Ross Palazzesi.

A statement from the QBCC said it was “closely monitoring the situation” through the commission’s financial compliance activities.

“All building contractors in Queensland, including Metricon Homes, must comply with minimum financial requirements and the QBCC has the power to take appropriate regulatory action in respect of any contractor who does not satisfy the financial requirements,” the statement said.

Metricon employs approximately 2500 staff, mostly in eastern Australia, where it has about 4000 homes under construction.