Q1 Homes: Director Paul Callender denies providing misleading figures to keep building licence

The director of failed builder Queensland One Homes has denied providing misleading work figures so the company could keep its building licence.

THE director of failed builder Queensland One Homes has denied providing misleading work figures so the company could keep its building licence.

Paul Callender appeared in the Federal Court in Brisbane this morning for the first day of a five-day public hearing into the collapse of the Gold Coast company.

Q1 Homes collapsed in 2017 owing more than $5.8 million to over 130 tradies and taxpayers, and leaving families with incomplete homes.

Paul Travis Callender and Amber Patrice Callender. Photo: Facebook

The hearing is the fulfilment of an election-even funding promise from the State Government and seeks to examine Q1’s business model in detail and what led to the company’s failure.

Edward Moon, appearing as counsel for the examination, extensively questioned Mr Callender on “work in progress” (WIP) figures put forward by Q1 to the Queensland Building and Construction Commission.

To be licensed builders must meet what are called Minimum Financial Requirements (MFR) to ensure they have enough asset backing to start and finish building projects.

WIP, or jobs that have yet to be completed, can count towards the net tangible assets of a builder, which makes up part of the MFR.

Paul Travis Callender and Amber Patrice Callender. Photo: Facebook

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Mr Moon asked Mr Callender about the discrepancy between WIP figures he put forward to the Building Standards Authority (now QBCC) and what was submitted by independent auditor Bentleys for the 2013 financial year.

Mr Moon said Bentleys’ WIP figure was $656,000 but Mr Callender’s was $2.295 million. Bentleys came to the conclusion the company had net negative assets of $500,000.

“When the Bentley figures came along later on they showed you had grossly overstated the WIP to the BSA,” he said.

“In December, 2013 you told the BSA the WIP was $2.295 million. Bentleys have come along and said at June 30, 2013 it was only $656,000.

“So there was a huge issue from what you told the QBCC from when you got these Bentley reports?”

Mr Callender denied he had manipulated the figures.

The hearing continues.