Watching the G C B Constructions saga play out week in and week out is like watching a slow motion train wreck.
The director said in the 11th May Gold Coast Bulletin article written by award winning journalist Kathleen Skene, "G C B Constructions is a long term viable business" but, if that's true, why then are subbies not being paid on time or at all?
They are delaying works due to non payment or late payment. Subbies have packed up their gear and bailed out of G C B sites all over the Gold Coast.
They have left site because they are not being paid on time in accordance with their contract or they are not paid at all and that is a disgrace.
Some of these subbies are owed for months of work.
From the ASIC website;
If a company cannot pay their debts when they are due, then they are trading insolvent and if dishonesty is found to be a factor, insolvent trading carries heavy penalties including jail.
We are not saying there is dishonesty but as is often the case with building companies, there is a lack of transparency.
Rapid growth can cause major financial problems for a relatively new company and that has far reaching issues for subcontractors who put their faith in builders to pay them on time in line with their contracts.
When they are not paid on time the consequences are traumatic for subbies, their staff and suppliers. It's even worse with inflation rampaging and the cost of living rising alarmingly and it can and does lead to subbies themselves trading insolvent.
It's a real kick in the guts when you work for months and then get every excuse in the book why you have not been paid and even worse when those who should be paying you are uncontactable.
No one, least of all SubbiesUnited want to see any builder, let alone a Category 6 builder fail but dragging this out is only making it worst for everyone down the food chain but especially for Subcontractors.
It's time to stop telling the world that this is a viable business and show us the company is viable by paying subbies on time every time.
Its pretty simple really, pay your subbies on time or liquidate the company and piss off out of the industry.
The Only Positive
There is only one real positive to take out of a slow motion train wreck like this and that positive is it gives subbies time to mitigate their losses, take trade credit insurance or jump off before the G C B train takes them all down in the wreckage.
Considering the negative publicity around G C B, it's surprising that Trade Credit Insurance is still available and CreditorWatch still have them as an acceptable risk.
There are hundreds of subbies who would disagree with the assessment of "an acceptable risk".
People say the QBCC should do something but they operate under the QBCC Act. They cannot just step in, legal requirements which binds them mean they cannot act arbitrarily, they need evidence.
Once they have evidence they can act and then they have teeth. With evidence they can request updated financials. The rules of natural justice require them to give the builder a further 28 days to submit the financial statements.
The process is not fast, it takes time but nothing happens without evidence.
Subbies who haven't been paid should submit a monies owed complaint with the QBCC because the QBCC cannot act without evidence.
UPDATE 4.45PM 12-05-23
Trade credit insurance has been withdrawn by some insurers in part based on the lack of communication. Also the increasing reported over dues and numerous collection actions.
Subbies add a level of protection to your business and join SubbiesUnited and make use of our private members forum for up to date information.
But a warning, if you are NOT a subcontractor, DO NOT JOIN, you will not have access until we approve you and in the approval process, we will weed you out, you are not welcome.