Yatala-based roadworks company i2S blames COVID-19 for decision to go into voluntary administration

A Gold Coast construction firm has fallen into voluntary administration blaming COVID-19 for delivering a fatal blow to its business.

YATALA-based road works group Intelligent Infrastructure Solutions has fallen into voluntary administration with the chairman blaming COVID-19.

Administrators Matthew Joiner and Bruno Secatore, of Cor Cordis, were appointed to i2S, which is headed up by chairman Clayton Glenister, on Monday.

A first meeting of creditors is due to be held on June 10.

Mr Glenister, who is managing partner of MBA Lawyers, said it was forced to pull its crews from four work sites in Victoria and NSW because it could not guarantee the health and safety of its employees during the COVID-19 pandemic.

I2S chairman is blaming COVID-19 for forcing the company to go into voluntary administration.

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“The health and safety of our employees had to take paramount importance and in fact there were some COVID-19 confirmed cases on those work site,” he said.

Mr Glenister said these were cases where its workers had to work in confined spaces with no social distancing.

“It was completely impractical.”

He said this imposed a “massive” financial cost to the company, which has 40 employees.

Mr Glenister would not say how much was owed to creditors, however he said all superannuation and wage entitlements had been paid out to employees.

I2S worked on the Logan Enhancement Project, providing signage and other road works.

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“At this stage our financier is in preliminary discussions with a potential party interested in acquiring the business. That will be under the control of the administrator now but we hope that may result in some of the creditors being paid.”

The administration follows i2S being issued a statutory demand in the Supreme Court by Gold Coast electrical subcontractor Civex for non-payment of $127,000.

The payment relates to work completed by Civex for i2S on the Logan Enhancement Project.

The payment dispute went to adjudication before the Queensland Building and Construction Commission, which awarded Civex 100 per cent of its claim plus interest.

In February this year Civex issued the statutory demand.

Sub-contractors Leisa Tobin and Dan Tobin are owed $127,000 by Civex. Picture: Glenn Hampson

I2S contests the claim and has filed its own counter claim alleging defective work by Civex.

It has been contacted for comment.

Mr Glenister said i2S’ counter claim was “far in excess” of what Civex stated it was owed.

He said it would be up to the administrators to pursue the court case.

Civex manager Dan Tobin said he has no confidence the company will be paid the money it says is owed by i2S.

I2S installs so-called “intelligent” infrastructure for road works, including electrical signage.

It calls itself an “end-to-end solutions expert“ that implements “construction processes and outcomes to top tier designers, contractors and authorities within the transport, roads and intelligent infrastructure sectors.