Privium Tell Clients to Transfer Contracts to Torsion Pty Ltd

Privium, Queensland's 11th biggest builder have done with their build contracts, what the Queensland Government just did to the people of Queensland, they are forcing them to do something against their will.

In the case of Privium, Novate contracts to another builder.

The Qld Government:

Get Vaccinated or suffer the consequences, you will not have the freedom that you have had all your lives, the freedom to cross the border, enter stadiums, go to a restaurant, go to a movie and all the other penalties being imposed on the unvaccinated.

They left people with no choice, be heavily penalised and become a hermit or get vaccinated.

Privium told their clients who signed build contracts with them in good faith, to transfer or Novate the contracts to Torsion Pty Ltd or suffer the consequences.

Privium said:

We have attached a deed of novation which we request your client to sign and return to us as soon as possible to ensure the continuous operation of their build. If your client does not wish to sign the deed of Novation, your clients build may be placed on hold indefinitely.

They have left people with no choice, Novate your contract with a builder you don't know or your build may (will) be placed on hold indefinitely.

The builds are already on hold and from some reports, some of the builds have been on hold for most of the year.

The deal was done with Torsion Pty Ltd before the date on the unsigned letter dated 25 October 2021 which introduces Torsion to the build clients.

According to the QBCC website Torsion currently has a Category 2 licence capacity of 12 million which was exceeded in 2020-2021 by 6 million when they did 82 builds at a value of 18 million.

Yesterday when the General Manager of Torsion Darryl Hopkins was asked how he intended to accomodate an extra 150 builds, he said;

By coincidence a few weeks ago we increased our capacity to Category 3 - 30 million.

Mr Hopkins also said he will guarantee payment to any subcontractors who have done work unpaid for Privium on the contracts that his company has taken over and thats a good thing.

Can Privium confirm with SubbiesUnited that all subcontractors and other creditors will be paid for work completed to date under their banner?

Privium lost approximately 28 million in the financial year ending 30 June 2020 and in the same year, paid a franked dividend of 18 million. I am not an accountant but I would have thought it would be sailing close to the breeze to pay dividends from accumulated losses.

I don't know where this leaves home owners, I assume most with a big hole in their budget but in most cases they have the QBCC home warranty insurance scheme to fall back on to mitigate the loss.

Subbies don't have that luxury.

SubbiesUnited have been contacted by some home owners and while they are not happy and pretty much in the dark, they for the most part are upbeat but they also know that the cost of their builds will rise due to the rapid increases in construction materials and labour.

Subcontractors, for your own protection, join SubbiesUnited, we have 2 membership options available.