The Day After

17-03-2022 9am

Once the dust settles we will have a clearer picture of how subcontractors will come out of the Condev liquidation but for some, all is not lost.

Out with the Old, in with the New

We have information that on some projects, developers have said they will pay February and March claims and guarantee subbies retentions so if that happens, it's an excellent result, at least for the subbies on those sites.

Here is the text outlining what is happening going forward. This text is relevant to The Cambridge Residences at Robina;

"Fwd:All
An update from todays meeting. The outcome is very good for the subbies and is. 
All subcontracts will be novated to the client. You will be paid by the client directly from now on. 

Your February claim will be paid on Wednesday next week. Any bonds or bank guarantees you have as part of your contract will be resolved through the liquidation process and will be recouped.

These are high priority. Retentions will be guaranteed by the developers if they’re not able to be recouped through the retention process (most likely they won’t do the developer has agreed to pay them). 

To summarise. You get paid for February next week. You retentions will get paid by the developer as per your contract.

As for the project. A company called Descon will complete the project reporting to the client’s representative, Eastview. They will engage the project team as early as tomorrow. We will be operating under their QBCC licence. 
So the job willl go on with all the same subcontractors and project management team, just under a different name. 

I have given your contact emails to L.... of Eastview. She will be sending out letters of intent for you confirming the above and give you comfort to start back onsite and get materials/tools/etc back. 

You will start back onsite as late as Wednesday next week. Descon are inspecting the site tomorrow. We will be in contact with relevant trades to get up and running again.  

FYI, Descon are pretty massive and have work on their books on the coast. It’s an exciting opportunity for everyone. 

The Brooke has survived (again) and will be up and running soon (again). 
Thanks again everyone. 
Cheers"

Descon are a Victoria linked Category 7 builder which also has a Qld director.

Condev developers need qualified manpower to finish their projects so it's in their best interests to look after Condev's subcontractors and suppliers.

We are looking forward to see if other developers and builders do the same thing. If they do, it will go some way towards restoring subbies faith in Condev and their developers.

The fear is that not all developers will follow this path because thats what happened when Bloomer Constructions went into administration with a DOCA.

Some subbies were paid the lot, some of them were partially paid and others weren't paid at all. It depended on what projects they were working on, what leverage they had over the developers (were they needed on site?) and what stage of completion those projects were at. And while it wasn't fair to all, unfortunately its a dog eat dog industry and some was better than none.

There are rumours swirling around other builders who are in trouble. All I can say to those builders is please seek professional advice on the best way forward.

There are thousands of Qld subbies relying on you and there are people out there who specialise in turning around companies in trouble.

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, do not join if you are NOT a subcontractor, we will weed you out, you are not welcome.