Fighting for subbies rights
As a subcontractor, when you are waiting on a payment for works completed, it's gut wrenching to receive a letter from the builder you are contracted to which says:
- As you may be aware, our business is currently faced with some working capital constraints. Please note, this has been the result of an unexpected delay in securing funding that would assist in addressing this issue.
- The issue at hand is considered temporary, whilst we continue to confidently and proactively pursue those avenues to procure funding in the shortest amount of time.
- We anticipate that all accounts will be paid on or before the week commencing 22 May 2017. We aim to pay accounts as soon as possible and will keep everyone informed of any changes to this date if there are any further delays.
That letter is almost identical to the letters and emails sent out to creditors by the recently liquidated Bluestone Constructions, Cullen Group and many others. I have copies.
I am glad they are confident but that doesn't pay subbies wages. I hope this builder can do better than those two liquidated companies.
Another underfunded builder who has gone in too light.
MBQ claim to be the voice for the construction industry but they are not singing loud enough. They have not done an acceptable job for subcontractors and any subbie who is a member should seriously reconsider that waste of money.
Make no mistake, they are a large money making machine. In the financial year 2016, they had revenue of 19 million with half a million net profit.
Their balance sheets shows net assets of 28 million. This fight is going to be David and Goliath battle but it should be a battle they fight with us instead of against us.
You get a far better deal here at substantially less cost because we actually do represent subcontractors and their interests.
They say they influence and lobby legislation with their peak body membership base.
Was the changes from independent financial reporting to self reporting made under the Newman Government MBQ's doing?
Their recent negative advertising campaign aimed at scuttling the much needed Security of Payment Legislation featuring Project Bank Accounts (PBA) soon to come into effect, is a betrayal of trade contractors.
PBA's are not an impost on builders, it is a level of protection for subcontractors the likes of which we have never seen and half their members are subbies. It must happen to save our subbies from financial oblivion.
The bare bones benefit of a Project Bank Account
Forget about all the negative rhetoric the MBQ have been waffling about in regard to PBA's, the basic principles of it work and work well for subcontractors.
- Currently our company is contracted to the above builder who does not have the capital to pay it's creditors.
- What has saved us is that the developer of the job we are working on, set up a Project Bank Account and our claims are paid from that.
- The builder has nothing to do with funding our claims and thank god for that.
- Last week on the due date, we received our 63k claim while creditors working on other projects for that builder were not paid.
If that's not PBA's working for subcontractors, I don't know what is.
It allows us to pay;
- Our staff
- Our suppliers
- Our staff's super
- Our tax.
There are no negatives for subcontractors in that PBA.
I don't give a toss about the MBQ's self serving arguments, the basic principles of PBA's work for subcontractors and anyone who doubts that should call me.
The only negative is that the builder cannot use our money to shuffle to other jobs or to pay their own staff. It removes the opportunity for the head contractor to misappropriate money that isn't his.
Whats a negative for him is a positive for subcontractors.
If the PBA was not in place, we would now be sweating on the unknown. We would have received that same letter. I would now be stressed to the max like so many other poor financially bludgeoned subcontractors and injecting our own money into the business once again.
Number 2 on the MBQ's Code of Conduct states:
- Service and promote the interests of the building and construction industry.
In the interests of accuracy, that should state:
- Service and promote our own self interests in the building and construction industry.
In their "About Us" statement they say:
- Master Builders is the peak industry association representing building and construction in Queensland since 1882. With more than 8,500 members, we are the voice of the industry.
In their annual report, the Master Builders Queensland states that it has 8,247 members but what's a discrepancy of a mere 253 Queenslanders? Their members are not only builders but subcontractors and suppliers and people who want to purchase their products.
- The QBCC has over 36,000 licensed builders in its database.
- The QBCC has over 138,000 licensed subcontractors and builders on it's database.
Based on these figures, MBQ represent only 6% of licensed contractors on the QBCC database.
At best, for every 1 member of the MBQ, there are 23 licensed contractors who choose NOT to be members. For every builder who chooses to be a members, 9 choose not to be.
Based on the QBCC database and their own 2016 annual report, they represent only a small number of licensed builders and even less subcontractors overall.
Figures taken from their 2016 annual report:
The representation of builders is appallingly low.
- 3972 BUILDERS (11% of all builders on QBCC database) just 1 in 10.
- 351 MANUFACTURERS & SUPPLIERS
- 22 STUDENTS
- 3038 TRADE ALLIANCE
- 47 APPRENTICES
- 817 CONSULTANTS/ ASSOCIATES / SUPERVISORS
MBQ are not a peak body because:
- There is an enormous number of licensed contractors who are not members of the MBQ
- The MBQ does not speak on behalf of any of the large number of trade associations
- They have been lobbying for changes to the industry that are adverse to the interests of trade contractors
- They are including in their membership, people who are members for the purposes of buying MBQ products
- They are not members for the purposes of subscribing to the MBQ's political or lobbying positions.
MBQ claim they are the peak body in the building and construction when they are clearly not. Anytime we see this claim in the media, we will be asking the relevant reporter for a retraction because they don't represent subcontractors.
- If they did, I would not be writing this
- If they did, they would not have spent a fortune on the ANTI PBA adverting campaign
It could be stated the the database and readership of Subcontractors Alliance and SubbiesUnited surpass the MBQ membership.
We have greater engagement with the industry than the MBQ, we have the best interests of the industry as a core value. We are not a huge money making machine.
So who really is advocating for all of the construction industry?
The answer is SubbiesUnited, Subcontractor Alliance and a number of trade associations.
MBQ, I challenge you to work with us for the benefit of all contractors in the building and construction industry.