AQWA Constructions owner Paul James Galvin bankrupt, with debts of $3m

Up to 35 construction projects across South East Queensland have been left in limbo after an award-winning builder declared bankruptcy with debts of $3m to suppliers across four states.

An award-winning Brisbane builder has gone under with $3 million in debt to more than 100 customers leaving about 35 construction projects in limbo.

Paul James Galvin, 65, owner of AQWA Constructions has declared bankruptcy on 25 April 2024, with creditors report documents revealing he owed millions of dollars in debt.

AQWA Constructions advertised itself as a “one-stop home renovation company” and offers “all types of building and landscape works”.

On its website, the builder was a winner of the HIA Brisbane Renovation and Addition Project category in 2021.

The construction company held a QBCC builders licence from 2015 and was cancelled in June 2024.

It comes after a major News Corp investigation which revealed the number of Queensland construction businesses that have gone bust is up by a staggering 194 per cent in the past two years.

AQWA Constructions owner has declared bankrupt in April, leaving some clients with un-complete renovations. Photo: supplied

During its operation, the QBCC had issued several infringement notices to Mr Galvin, including in 2022 was found in breach of schedule 1B, section 33 listed as excess deposits.

Bill Cotter, from Robson Cotter Insolvency was appointed as Trustee for the estate, and found excessive borrowing, business failure and legal action led to the collapse of the businesses.

“It is apparent the construction businesses operated by the bankrupt grew very quickly over the period of several years during and following the Covid-19 period, and a combination of under capitalisation, poor accounting practices, increasing labour and material costs and lack of management oversight and control, have likely contributed to the ultimate failure of the business,” Mr Cotter said in the report.

“In any event, it is quite difficult to pinpoint precise dates of insolvency and our investigations are ongoing in relation to same.”

The creditors report shows Mr Galvin owes suppliers across New South Wales, Queensland, Western Australia and Adelaide.

With more than 100 unsecured creditors found in the initial report, totalling $2,812,513 of debt, including $1m to the Deputy Commissioner of taxation in New South Wales.

At the time of appointment Mr Cotter identified Mr Galvin was “engaged in a number of residential projects.”

“I can confirm there was approximately 35 residential construction jobs in progress as per his books, as at the date of my appointment,” Mr Cotter said.

“As noted the bankruptcy will result in the cancellation of the bankrupt’s QBCC licence and the inability to complete those projects.”

“All affected homeowners are recommended to contact QBCC to determine where claims may be available to them under the home warranty insurance policies.”

A former client and listed creditor who didn’t want to provide her first name Ms Lo and her husband contracted AQWA for full house renovation works for their Kenmore rental property in November last year.

AQWA Constructions owner has declared bankrupt in April, leaving some clients with un-complete renovations. Photo: supplied

Ms Lo said she was initially dealing with a sales consultant for AQWA before the works were handed over to Mr Galvin.

“The quote was $280,000 and paid the initial deposit of $14,000 and asked for 20 per cent and paid another $56,000,” Ms Lo said.

“We accepted the quote in March this year, and then he did one last site inspection with one of his interior designers in early April with a brief floor plan, and provided one hard copy.”

Ms Lo said after handing over payments in April, contact with Mr Galvin ceased.

“We received the two invoices and the QBCC contract that Paul provided and paid it,” Ms Lo said.

“I tried to call him, the phone was disconnected mid-April, and then all the mobile numbers we could find, disconnected and emails not responding and couldn’t find anyone to provide updates.”

Ms Lo said she has since contacted the QBCC to lodge a complaint against the builder.

“The contract we signed for the project should be starting first of July, we have already gone through QBCC to complain and lodge,” she said.

“We did receive the legal five per cent deposit back but the rest we will have to go through QCAT.”

The Courier-Mail made several attempts to contact Mr Galvin.

Originally published as AQWA Constructions owner Paul James Galvin bankrupt, with debts of $3m