Construction firm Brisbane Valley Civil goes under owing half a million dollars

A Brisbane civil construction company has collapsed owing in excess of half a million dollars, including more than $92,000 to employees.

A Brisbane civil construction company that specialised in vacuum evacuation on building sites has collapsed owing in excess of half a million dollars.

Hamilton Murphy Advisory partner Stephen Dixon has been appointed liquidator of Brisbane Valley Civil, founded in 2014 by James Donovan.

Mr Donovan had over 15 years’ experience in civil construction including the Gold Coast light rail, National Broadband Network (NBN) and Lowood to Fernvale sewer line.

In 2017, Brisbane Valley Civil in response to the growing need for safe excavation on building sites expanded its services to include a fleet of vacuum trucks.

The trucks, which are fitted with high-pressure hoses and suction tubes, are used to undertake non-destructive excavation and vacuum clean up.

According to documents lodged with the Australian Securities and Investments Commission (ASIC), Brisbane Valley Civil owes the Australian Taxation Office $324,000 and 24 employees in excess of $92,000. Mr Donovan was unavailable for comment.

The construction industry continues to feel pain. Photo: iStock

The collapse of building firms across Queensland so far this year has cost the industry $50m. CreditorWatch said construction remains the worst industry when it comes to businesses in arrears, often due to stalled project financing or delays.

New research by CreditorWatch shows that 12 per cent of construction businesses were taking more than 60 days to pay their bills on average.

Business leaders have warned Queensland’s building sector is buckling under the strain of material shortages and cost blowouts in the wake of the Covid-19 pandemic which could see a wave of future business collapses.

Liquidators were appointed to award-winning Brisbane builder PlanBuild in April leaving 40 homes unfinished, scores of “devastated” clients and owing creditors more than $2m.

Verus Construction, which helped roll out the Taco Bell chain in Australia, collapsed owing creditors about $3.4m after a series of disputes with subbies over the past three years.

Brisbane Valley Civil director James Donovan.