Fighting for Subbies Rights
Updated at 6pm 10.10.17
Here we go again.
It is our understanding that CRCG - Rimfire Constructions Pty Ltd payments to creditors have ceased subject to a review and a possible payment plan from their Chinese headquarters.
The report we have is and I quote:
"We are currently reconciling all accounts for several projects in our hands to put forward a cashflow plan to our parent CGRC in China. Then, we would expect a payment structure or plan to be presented to all creditors".
They are telling subbies whose accounts are 10 days overdue the following;
- They have no money
- They have to reconcile the accounts for their jobs at Fortitude Valley and Greenslopes and one other project
- They have to send the reconciliation to CRCG China
- CRCG China will then "hopefully" come up with a payment plan
- Subbies are effectively being told it will be "pay when paid" which is strictly prohibited under BCIPA.
The QBCC has granted CRCG Rimfire an 18.26 billion dollar license a little over a year ago yet here they are now, an empty shell with no money to pay subcontractors.
This company does not appear to have those assets here in Australia.
Assets are not readily available to creditors here in Australia so what the hell are they doing with a gigantic QBCC license?
This has all the stench of International Piracy similar to Concrete Constructions which was an exceptionally well run Australian company bought out by an overseas company which then failed to fund the local company.
The directors of the parent company were outside the jurisdiction of Australia and therefore could do what they pleased with impunity.
What To Do Now
I have been asked a number of times where to from here.
For a start I have our debtors insured. There are two reputable insurance brokers who advertise on our site, get two quotes, that will give you peace of mind and you can pay it off over the insured period.
Rule number one;
IF YOU CANNOT INSURE A BUILDING COMPANY, DON'T WORK FOR THEM.
Better to sit on the beach and go broke than let unscrupulous flogs steal your money and send you broke.
https://subbiesunited.com.au/acquire-trade-credit/
https://nci.com.au/subbiesunited-com-contact-page/
I have joined whojungle.com.au. Subbies & Suppliers join up and go to the 67p link and calculate the interest on any overdue money for any builder who is in arrears. The 67p part of whojungle is free and is a good tool to help encourage builders to pay promptly.
Under section 67p of the QBCC Act, they must pay you interest on overdue amounts. The interest accrues at the rate on that calculator daily.
I would then send the invoice including the 67p interest to CRCG Rimfire.
I would do the same with a QBCC monies owed form, the sooner the better and make the claim under the Building & Construction Industry Payment Act (BCIPA).
http://www.qbcc.qld.gov.au/sites/default/files/Monies%20Owed%20Complaint%20Form.pdf
Get your own legal advice from a reputable construction industry law firm.
QBCC Minimum Financial Requirements Checklist
I have asked the QBCC for a copy of the check list that CRCG would have done for the Minimum Financial Requirements (MFR) before CRCG were granted their massive license 14 months ago.
I won't hold my breath waiting for that to turn up in my inbox.
At the time I was told it was the 2nd biggest QBCC license in Queensland history. They hand them out to foreign companies but hound the life out of local subbies.
MBA & HIA Scandalous Act Against The Subbies Of Qld
It is beyond belief to think that the MBA and the HIA are opposed to the government's new legislation to set up Project Bank Accounts for the protection of subbies money when this is happening on a daily basis.
It's a sell out of their own members who the MBA claim are made up of 4000 subcontractors.
Any subcontractor or supplier who has overdue CRCG payments should contact me on support@subbiesunited.com.au.
