Fighting For Subbies Rights
Yesterday the QBCC placed an immediate suspension on Sommer and Staff's license.
Financial Analysts in Attendance
I have been reliably informed that today "financial analysts" are in attendance at Sommer and Staff's office and are investigating the company's financial position to ascertain if the company has been trading insolvent.
You don't have to be a "financial analysts" to know that it's likely they have been, most subbies working for them could tell you that.
QBCC
The QBCC would have done their own financial analysis, if they were unsure of the position of the company they would have imposed conditions on the license. An immediate suspension indicates they are in no doubt as to Sommer and Staff's lack of compliance with the QBCC's Minimum Financial Requirments (MFR).
Bottom line on insolvent trading, if a company cannot pay its bills when they fall due, that company is trading insolvent. There have been dozens of subbies who have been strung out for many months.
This has been a long time coming, SubbiesUnited have been in contact with the general manager and financial controller since early October 2017 in regard to suspension of contract works at a project at Mt Gravatt and non payment of subcontractors on various jobs.
Back then I was assured that all was good financially with this statement from General Manager and director Dan Burley "We stand by our reputation for building quality projects in a safe environment.
The external accountants have just completed the 2017 audited financials, these will be lodged with ASIC and QBCC by 28th October should anyone wish to review".
Audited Financials
These "audited" financials should be put under the microscope along with the company who audited them. It will be high on our agenda to ensure that happens in the event of a liquidator or administrator appointment because it is dodgy figures that allow mortally wounded builders to trade on and cause untold financial carnage to subbies and suppliers.
Timely Reminder
It is a timely reminder to any builder doctoring the books that there is an imminent Labor Government funded public examination of the directors and other influential people in the Cullen Group and Q1 Homes liquidations.
If you want your arse in the chair under a hot light with well armed legal eagles circling, continue to dodgy the books but there will be a day or reckoning.
Back in October 2017 I suggested to subbies who weren't being paid that they should consider copying SubbiesUnited into their emails regarding payment as an incentive to be paid and in some instances it had the desired effect. No one wants bad publicity.
That was 11 months ago so those subbies would be out of danger of potential preferential payment claims when a liquidator is appointed.
On the 18th July 2018 the General Mananger sent an email to subbies working on Citro Apartments Project West End telling them:
"We have never encountered issues with a project such as this, in our 45 years in the construction industry and are using all our resources to sort the issues out" despite a similar situation in 2017.
The GM went on to say:
"We submitted a progress claim to the Principal that was cutback by 95%.
Part of the progress claim assessment from the Superintendent included the application of Liquidated Damages to the project to date. We are currently negotiating an agreement with the Client to remove the liquidated damages if we reach Practical Completion by a certain date".
The general manager has a very short and selective memory, it was a similar situation on a similar project 11 months earlier that I had been in contact with him about.
I have a long list of subcontractors who are owed extremely large amounts of money, the largest I am aware of is in excess of $500,000. Some subbies have insurance but last month underwriters withdrew cover for Sommer and Staff, that was a telling blow.
I urge all subbies to look into debtor insurance, we use Acquire Trade Credit who advertise on this site. The cost is worth the peace of mind it gives you. If you have been asked to do a job for a new builder, you can call your broker and he will tell you if the company you will be working for can be insured. If you can't insure them, don't work for them. Its that simple and a quote costs you nothing and you can pay the premium off over the period of cover.
If you need help, contact us - support@subbiesunited.com.au.