Subbies confront worst fears as unlikely to be paid this Christmas

THE builder creating the two tower $100 billion resort-style units at Robina has collapsed sparking fears about money owed to up to 300 subbies.

Boheme Apartments at Robina. Photo: Steve Holland

THE building company behind the two tower, resort-style units at Robina has collapsed sparking fears about money owed to up to 300 subbies.

ASIC documents show the Brisbane-based construction company Cullen Group Australia is under external administration.

Brisbane insolvency accounting firm Pearce and Heers was appointed liquidator late on Thursday in a voluntary winding up of the builder.

The Bulletin has been told the Cullen Group, which is registered as a $30-60 million company, has at least eight major projects underway from Brisbane to northern New South Wales.

Building industry insiders are aware of a subbie being owed $100,000 on the Robina site and a plumber seeking $160,000.

The industry source said it was doubtful any of the subbies would receive their money.

Boheme Apartments at Robina. Photo: Steve Holland

The Robina Group which is overseeing the $100 million 129-apartment project, part of its $250 million City Village development south of the Robina Town Centre, will be forced to find another builder.

“The Robina Group is pursuing avenues to ensure the work is being completed,” a Robina Group spokesman said.

Subcontractors Alliance spokesman Les Williams said subbies believe “that enough is enough” and the Government should fast forward reforms to protect them.

“We can no longer tolerate these losses to local small businesses,” Mr Williams said. “(It is) time for a cultural shift in the industry and the industry change that Minister (Mick) de Brenni is planning.

“Even now on the Gold Coast there are developer-builders operating who have previously left debts behind to subcontractors of over $100 million.

“I was informed that Robina (the Robina Group) – Cullen and Subcontractors had a meeting about non-payment issues a while back.

Artist impression of the Bohème Apartments is being developed by the Robina Group at Robina.

“There have been payment issues with Cullen now for some time so subcontractors could rightly ask what Robina and other clients knew.”

But the Robina Group late last week indicated it had made all its payments to the Cullen Group.

Robina director Tony Tippett said “we don’t know what’s gone wrong, we can only assume something has happened on another site”.