Friday 25-07-25 2.15 pm
Every builder that has ever liquidated and most who haven't have traded insolvent at some point, they all do it because they know there are no ramifications.
"What is Insolvent Trading?
A company is considered insolvent under section 95A of the Corporations Act 2001 if it cannot pay its debts as and when they become due and payable.
Insolvent trading occurs when a director allows a company to incur new debts while it is insolvent or when incurring those debts causes the company to become insolvent.
Consequences of Breaching Section 588G
If a director fails to prevent insolvent trading, they may face: Civil Penalties: Fines of up to $1.11 million or three times the benefit obtained, whichever is greater, as imposed by the Australian Securities and Investments Commission (ASIC).
Personal Liability: Directors may be personally liable for debts incurred during the period of insolvent trading, with potentially unlimited compensation orders that could lead to personal bankruptcy.
Criminal Penalties: If the director's failure involves dishonesty, they may face up to 5 years imprisonment and/or fines of up to 2,000 penalty units (approximately $626,000 as of 2025).
Disqualification: Directors may be disqualified from managing corporations under section 206C of the Corporations Act."
Consequences? What consequences?
When was the last time you heard of a liquidated builder criminally convicted even when there is irrefutable evidence of fraud.... and there always is? Hey Stokes Wheeler, where did the 2.7 million go from your retention "TRUST" Account?
Imagine trusting you bastards with our money!
Currently our members are deeply concerned about a builder who doesn't pay on time, not even close to payment on time.
Following are 8Points on why we believe this company is insolvent:
1 Payments delayed, at times by months
2 No communication with subcontractors when they call and ask where their payment is
3 Numerous QBCC Monies Owed Complaints
4 Some insurers pulling trade credit cover
5 Numerous subbies in the same boat, UNPAID
6 I am told the QBCC was investigating (lol), might as well get the local kindergarten to have a look at them.
7 One subbie said: "At this time of the month the worst part is they would have received their June payment claims by now, and we are still chasing payment for May invoices".
8 Doing their own developments so always late paying subbies.
There are also claims of the highly illegal and jailable offence of paying debts out of their Retention Trust Account. Jailable? What a laugh. Who is going to pay to investigate? Who is going to convict?
The QBCC have been warned but in their usual incompetent fashion, they have sat on this for months.
Their newly appointed Commissioner is, according to his bio a "results-driven executive leader and chartered professional engineer with extensive experience transforming organisational performance through strategic leadership."
Sounds great dude, so how about some leadership when it comes to builders where you have mountains of evidence that they are about to shit the bed and take down a stack of hard working subbies and suppliers with them?
The QBCC have not changed in all the years we have represented subbies, they are still flopping around like headless chooks and all the separate departments work under their own cone of silence and rarely talk to each other.
Have to adhere to the QBCC Act you say? Lobby the Government to change the legislation so that you can actually do the job you are paid to do.
We have all seen this train wreck coming for years now and come it will. The media will jump on it and it will get plenty of clicks and views and comments but nothing will change.
Recently I asked a journalist what sort of attention, clicks, views, visitors etc that a failed builder article gets. I was told its huge but once the heat dies down, its back to normal where nothing changes with builders late paying, subbies stressed to the max and record numbers of avoidable insolvencies.
I know from the stats on this site, when Condev went down in 2022 there was 8,090 views/readers of our article on the first day.
Well done Condev, you hold the record for being the biggest insolvent arseholes in the Qld building industry.
The moral corruption in Government which flows down to the building industry will never change. Government are the enablers, they could stop it but they are too bone lazy and are content having a good time jetting around the world on us mugs.
The last Labor Government eventually mandated watered down Project Trust Accounts, years after they promised they would and with long delays and caveats to most of them.
The LNP Government comes along and puts them off for a few more years with the excuse that they would be "an impost on the builders in this industry". Like who gives a flying fuck about the hundreds of thousands of subbies being bled dry?
Meanwhile, builders have found a new source of cashflow.. Yes you guessed it, the new project trust accounts, in particular, retention accounts.
You only have to read the liquidators report for Stokes Wheeler. Builders have always used retentions as part of their cash flow and they still do, even if it means stealing it out of the Project trust accounts because they know they can do it with impunity.
The word "honest" and "politician" have no place being used in the same sentence. It's the same in any government anywhere in the world.
Maybe some individuals start out thinking they can change the system but with few exceptions, too few to mention, it doesn't take long before the lure of an easy life on the public purse corrupts them like the rest.
Imagine how satisfying it would feel. There is nothing better than strolling along the Great Wall of China, hand in hand with your love, taking in the history and magnificent vistas while gently suckling on the public teat.
And knowing that when you are finally almost home from kissing President Xi Jinping's copious and succulent butthole, you can direct your pilot to fly you to Canberra to the Lodge, Kirribilli House overlooking Sydney Harbour or the clifftop multi million dollar private mansion at Copacabana.
The shill from public housing, our leader who has never had a real job or done a hard days work in his life, has finally made it!
Life is good living on the public tit. Who voted for this lush?
I really don't think it matters who is in power Federally or State, there will never be meaningful change because they like to keep the masses poor and under control and have us be reliant on them.
Subbies who are members, you know who I am talking about here, protect yourselves as much as you can by all the means we have discussed here on our forum over the years. There is plenty of warning, 3 or 4 years of it. Don't work for this company but if you must, the idea is to limit the damage by all means possible.
Subcontractors, be a part of SubbiesUnited's Private Members Forum and help us stop the rort!
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.
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