Subbies demand pay as another Sunshine Coast builder collapses

Subcontractors have gone to the home of the latest Queensland builder to go into liquidation demanding to know if they will be paid.

SUBCONTRACTORS have gone to the home of the latest Sunshine Coast builder to go into liquidation demanding to know if they will be paid.

The collapse of ZHKM Pty Ltd trading as Clissold Homes and Renovations has left debts of $400,000 to $500,000.

It followed a string of construction sector failures across south east Queensland in the past eight months affecting Sunshine Coast trade subcontractors.

Subcontractors who were told last Thursday that two job sites were shutting down went to the Maroochydore residence of Clissold Homes head, Zachary Clissold, demanding information.

"If I had money I would have paid people but I don't have it," Mr Clissold said.

"All I can do is apologise personally to those owed money."

ZHKM Pty Ltd liquidator Paul Nogueira of Worrells Sunshine Coast said there had been an increased "up-tick" in inquiries with his office since before and immediately after Christmas from builders in difficulty.

He said there was likely to be a flow-on impact to subcontractors as a consequence.

Mr Nogueira said margins for contractors to major builders were exceptionally tight and even small delays could bring businesses undone.

The Queensland Building and Construction Commission has started exclusion action against Zachary Clissold and ZHKM Pty Ld.

"The QBCC was contacted by two contractors with monies-owed complaints about the company," the spokesperson said

"There are no other current monies-owed complaints in relation to this entity."

The spokesperson said the QBCC was aware of two home owners who were affected.

He said subcontractors and suppliers who believed they are owed money by ZHKM Pty Ltd should contact the liquidator, Paul Nogueira of Worrells in Maroochydore (phone [phone] - [e-mail] )

"We will be contacting the owners to advise them to ensure they legally terminate their contracts before lodging an insurance claim for assessment under the Queensland Home Warranty Scheme," the spokesperson said.

Mr Nogueira said it would be Monday or Tuesday of next week before the full extent of money owed was determined.

Subcontractors who contacted the Sunshine Coast Daily said they were left owed amounts from $16,00.

"It's getting out of control," one said. "When will it stop?"

Mr Clissold said he had a contract in 2018 that had cost the business a lot of money.

"I tried to trade out of it but I've got to the point where I can't continue to trade. I've had accounts closed."

Mr Clissold put his difficulties down to a contract in 2018 that had cost the business a lot of money

He said he had attempted to trade out of that loss but had reached the point he could no longer continue to trade

Money that the business had expected to come in early this year had not arrived.

The latest construction sector failure follows that of Sunshine Coast businesses Ideal Interior Linings that left hundreds of thousands of dollars in debts last June and the folding of Cleary Group Pty Ltd in August owing around $3m and then the October implosion of Stirling Homes with debts of around $1.4m.

Last month's downfall of the G. J. Gardner North Ipswich franchise left debts of around $750,000 while the failure of Ormeau-based Queensland Custom Homes has also impacted small business unsecured creditors.

The QBCC spokesperson said under Queensland law, a person became an excluded individual if the individual is a director, secretary or influential person for a construction company at any time up to two years before a liquidator was appointed.

An excluded individual cannot hold a contractor or nominee supervisor licence or be a director, secretary or influential person for a QBCC-licensed company for three years from the date of the liquidation.

New Minimum Financial Requirements rules took effect on January 1 which would require licensees to meet enhanced financial reporting requirements to demonstrate their financial position to the QBCC.

The State Government introduced the first phase of Project Bank Accounts (PBAs) on March 1 last year for Queensland Government building projects - but not engineering projects - valued between $1 million and $10 million.

It planned to extend PBAs this year to include private sector work valued at greater than $1 million.