Liquidation blamed on Shoalwater Bay payment pain

Updated - Sept 29 AM A Central Queensland construction firm that has gone into liquidation says it is owed about $2.5 million for Shoalwater Bay work and that other contractors are up against the wall due to non-payment. However Downer said today that Jett Building and Construction had been paid in full for work completed on the project to date. Jett Building and Construction director Brett Dixon said terminating 31 staff this week was one of the toughest things he'd had to undertake. "I have built my business on the back of supporting other local contractors and business owners and our inability to pay these local businesses is probably one of the hardest things to swallow," he said. "Local businesses supporting local businesses is what this community is built on. We are owed millions of dollars by DFKG for unpaid claims and variations on the Australian Defence Project at Shoalwater Bay and receipt of these monies would have seen creditors paid." Downer EDI and joint venture partner FKG Group were appointed by Defence to deliver the $135 million Shoalwater Bay Training Area Remediation Project. A Downer spokesman said today that Jett Building and Construction’s contracts in relation to this project were terminated five weeks ago. "Jett Building and Construction has been paid in full for all the work it has completed on the project to date," he said. Mr Dixon said the final decision to place the company into liquidation came after many months of dealing with joint venture staff who made promises of payment, whilst still requesting the company to undertake additional works. "Unfortunately, the payments never came, whilst we continued to complete works so that DFKG reached their targets," he said. "The actions of DFKG are continuing today with other contractors owed thousands of dollars also and they too may be forced into liquidation due to non-payment. "Whilst local businesses jumped for joy at the start of the project with the Federal Government’s promise of supporting local jobs and contractors the reality of the situation is now a loss of a company and its employees out of jobs, with creditors left without payment." Michael Beck and Morgan Lane of Worrells Solvency and Forensic Accountants have been appointed as liquidators to the company. Worrells said trade creditors were owed approximately $1.9 million at the date of liquidation. "The liquidation is in its infancy, and the Worrells CQ team is assessing the company’s financial position and endeavouring to realise the company’s assets which includes amounts owing on the Shoalwater Bay project," Mr Beck said. "Whilst not the company’s only contract, its records indicate that JBC may be owed amounts of approximately $2.5 million in respect of the Shoalwater Bay project and we understand that the non and delayed payment on this project resulted in the liquidation of the company. "Our team is working through the process to get the best outcome possible for customers and creditors. We understand the impact that the appointment may have on affected parties and the community. We will continue to proactively communicate the stakeholders at each juncture of the liquidation.” Worrells is calling for all creditors to lodge a proof debt via its online portal at www.worrells.net.au

Liquidation blamed on Shoalwater Bay payment pain

Industry Queensland

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