Sunshine Coast builder National Construction Management goes under owing about $3m

A Sunshine Coast building firm has collapsed only weeks after the regulator flagged concerns about its financial stability.

Sunshine Coast building firm National Construction Management has collapsed only weeks after the regulator flagged concerns about its financial stability.

Dane Hammond and Paul Nogueira, of Worrells, were appointed liquidators of the 17-year-old company amid concerns it was not paying subcontractors and other suppliers.

Mr Hammond said he was still working to determine how much creditors were owed, but company records indicated approximately $3m was owing, including an amount to the Australian Taxation Office.

He said he believed the company had only three incomplete projects and these had been terminated prior to his appointment.

“The company had been struggling with many of the same issues that have plagued the building and construction industry over the past few years,” said Mr Hammond.

“This included a shortage of available trade labour, increases in raw material and contractor prices and projects either being delayed or shelved.”

The Queensland Building and Construction Commission (QBCC) last month placed controls on the licence of the Forest Glen-based company to prevent it providing tenders and quotes unless prior approval was given by the watchdog.

National Construction Management HQ on the Sunshine Coast. Photo: Asa Andersen

The restrictions also prevent the firm entering into any new building contracts unless the prior approval of the watchdog was given and subcontractors were paid in advance.

Founded in 2006, National Construction Management (NCM) dealt in commercial, residential, educational and aged care projects costing between $5m and $100m. The watchdog also required the company to provide a list of debtors and creditors.

According to QBCC records after taking on a record $12.7m worth of residential construction work in 2020/21, the company’s work book dwindled to $6.3m in 2021/22. According to a filing with ASIC. NCM last year completed a $2.3m share-buy back from shareholders.

Projects over the past three years have included the Boonah Aged Care Facility for the Churches of Christ, the Curve luxury apartments at Birtinya and Glennon residence at Noosa. Comment has been sought from NCM director Mick Robbie.

The appointment of liquidators to the Sunshine Coast firm comes as national building company PBS last week collapsed owing $25m and leaving 80 unfinished projects scattered around the country amid a deepening industry crisis.

RSM Australia appointed voluntary administrators of PBS and its trading companies operating in the Australian Capital Territory, New South Wales and Queensland.

The 33-year-old company earlier this week abandoned construction sites amid mounting losses, rising costs and labour shortages. RSM Australia partner Jonathon Colbran said the company had 80 residential and commercial projects in various stages of construction.