As reported in the Courier Mail, Vystal Construction is in liquidation after stringing out subbies for almost 12 months. They owe over 180 creditors 4 million dollars.
The Courier Mail story says:
"Vystal Constructions is run by director Martin Graham and was part of the Vystal Property Group.
It is understood the wider Vystal group is unaffected by the liquidation".
Why is that? Why is the building company in liquidation but the development company can continue on its merry way? Why isn't the development company forced to pay the creditors?
Vystal first came to our attention in April 2019 and was the subject of discussion on our private members forum in July 2019 for non payment of accounts so the there is little doubt the QBCC would have been aware there were serious financial issues with this company back then.
Any of our members thinking of contracting to them would have benefitted from the knowledge that they were not paying their subcontractors in mid 2019. Those subbies have potentially dodged a significant financial hit.
One giveaway is when a building company chances from one subbie to the next on various trades. It's often a sign that the first subbie was not paid which was the case here.
It's a huge red flag to subbies who know what they are doing and was part of the discussion.
On 22nd November 2019 the following conditions were put on their QBCC licence but it was all too little, too late once again;
MJM Projects is to provide monthly reporting to QBCC, by close of business on the 10th of each month,
(1) balance sheet and profit & loss as at the month end date;
(2) balance sheet for any related
entities owing monies to the company as at the month end date;
(3) aged debtors and creditors listings as at the month end date;
(4) evidence in writing that the company's creditors are being paid in accordance with agreed terms and conditions;
(5) evidence in writing that any agreed repayment arrangements made with
creditors are being complied with;
(6) ATO Portal activity statements for the integrated client and income tax
accounts. MJM Projects Pty Ltd is to provide copies of any proceedings by any creditor, whether by claim or statutory demand or application to wind up. MJM Projects Pty Ltd is to immediately notify QBCC of any
significant changes that may adversely impact its' financial position.
We at SubbiesUnited are tired of emailing reams of information to the QBCC who don't act on it or if they do, we never hear back from them other than a cursory "Thx John". Thats not good enough, they are a secretive organisation and the feeling among a lot of subbies is that is to cover their own incompetence.
How did MJM Projects (Vystal Construction) continue to operate for another 7 months?
How many subbies and suppliers were burnt in that 7 month period?
If the QBCC stopped wasting money like they were alleged to have done in this channel 7 news item, they might have a better strike rate doing what is important such as cleaning up this industry. Instead they make law firms rich while subbies do their arses working for builders who clearly do not meet their MFR's and therefore, cannot meet their commitments.
This comment by the QBCC Commissioner with a smug grin is laughable, "we do everything that Queenslanders expect us to do to ensure that we are an effective and efficient building and construction regulator."
On a personal level I have sent the QBCC and in particular, the Commissioner, dozens of emails containing comprehensive details of wrongdoing but many of the subjects these emails are still ripping off subbies.
QBCC I have news for you, there is a hell of a lot more you could do for the people of Queensland, its time to stop the ripoff!