Fighting for Subbies Rights
Not sure if I have missed any but 2019 has kicked off with Lusso Projects in Voluntary Administration (VA), QNV Constructions Licence suspended for non payment of subbies & Suppliers and failure to comply with a financial audit and GJ Gardiner Ipswich in VA .
This was after an email sent out to GJ Ipswich subbies & suppliers on the 10th of January, gleefully gloating about how well they went over the last 2 years and what the new year holds for the company, predicting a bright year ahead.
Administration instead of liquidation = rubbish builders buying time to get as much out of the company as they can to defeat creditors.
Administration should be used to get something back to creditors such as a DoCA and to protect creditors from the ridiculous and antiquated unfair preference laws. It should not be to hide behind and buy time.
SubbiesUnited member takes a $150,000 hit and the big fella is very very angry
One of our members finished a job for GJ Gardiner Ipswich as late as Wednesday (2 days ago) and no doubt there are other subbies and suppliers in the same boat. The GJ director appointed Worrells on Thursday. That is just the lowest form abuse of subbies you will find.
The subbie is owed $150,000 with the one saving grace being that he wisely took out trade credit insurance but it is still a big hit after the claim fee and the premium increase that will no doubt come because of the claim.
The director of GJ Gardiner would have known months ago that he had serious financial issues with no way out, yet he allowed the subbies to continue building his houses right up until the day of the appointment of the liquidation firm Worrells. In doing so he milked his subbies for every last drop of sweat.
What sort of man does this? What sort of man sends out the following email on the 10th of January to a group of subbies and suppliers knowing full well he was stuffed and had no hope of paying them?
Builders email on 10th Jan to 30 Subbies & Suppliers
Good Thursday morning, everyone, trust this email finds everyone well! It’s day 4 back here for most of us in the GJ Ipswich office, and it’s already going gang-busters, LOL. It’s clearly going to be a busy year – from putting 30 slabs down last year (and 20 the year before) we will be readily on track to do 40 slabs this year. Thank you as always for the input, support, and – in many cases – patience as we’ve continued to grow over that time.
So, here is the first schedule update for the year – we’ve had some closed-in homes drop off at the front end, and have 2 newbies to add at the back-end. The dates are yellow are window delivery dates that I need to double-check with W..... on his return from AL on Monday, but otherwise should all be pretty clear! 😀
Breakdown of email - Happy Days ahead
Lets break down that email to his subbies so some of the newer subbies know how to read between the lines.
The use of the words "gang busters", "LOL" (please tell me what is amusing about ripping off hard working and trusting people Mr Director?), "its clearly going to be a busy year" (yeah busy with you scurrying into your office under cover of darkness like the rat you are, removing incriminating evidence), "20, 30 and 40 slabs" down, (yeah great, much of it free to you so no wonder its "happy Thursday").
If you ever get an email from a builder thanking you for your input, patience and support you immediately know they are in deep shit so salvage what you can and run a mile as fast as your weary legs will carry you;
1) input = they don't listen to a word you say, they certainly rarely act on any input, they are so far up themselves they think you are insignificant
2) patience = they have been late paying you, very late if at all
3) support = they are late paying you, very late if at all but they expect you to continue to throw good money after bad with your financial support so they can salt it away for a rainy day (liquidation).
Removing items from his office last night
We have evidence that the director was removing items from his office last night, it was witnessed by an irate subbie and his partner.
I would have thought Worrells were now in control of the company and nothing should have been removed from the premises.
Why didn't Worrells change the locks?
Worrells do you job here, go and retrieve anything he removed from the office and quarantine the evidence you will need to prove insolvent trading and to lay charges.
Our advice is to be very vigilant with your debtors and if they are late paying you, email them once with:
- "you are outside our trading terms, please bring the account back inside our agreed terms of trade".
- Then hound the hell out of them by phone or in person.
- Do not mention stopping work or supply.
- Stopping supply can also incriminate you in regard to preferential claims.
- This way it is less likely that you are incriminating yourself and being exposed to preferential payment claims.
The emails you send to builders are used as evidence in court by liquidators to successfully sue you for preferences so you should choose your words very carefully.
Happy Friday subbies, so far its going "Gangbusters".