It's understood dozens of trade creditors are owed money after a high-profile Sunshine Coast construction company entered voluntary liquidation this week.
It's understood dozens of trade creditors are owed money after a high-profile Sunshine Coast construction company entered voluntary liquidation this week.

Dozens owed money after major builder goes bust

A SUNSHINE Coast construction company has entered voluntary liquidation just months after completing a rigorous financial audit.

Worrell's Sunshine Coast director Paul Nogueira was appointed liquidator to GSG Contracting Pty Ltd on November 4.

The firm's high-level Queensland Building and Construction Commission licence was suspended on October 28 for failing Minimum Financial Requirements and its State Government Pre-Qualified Contractor status has been made inactive.

Details of the extent of debt remained unclear.

The liquidator has lodged information with the Australian Securities and Investments Commission showing GSG Contracting had assets of $1 million against liabilities of $1.4 million.

GSG Contracting Pty Ltd construction manager Simon Graye with company director and secretary Claudia Vaile.
GSG Contracting Pty Ltd construction manager Simon Graye with company director and secretary Claudia Vaile.

It is understood the largest creditor is the Australian Taxation Office with about 50 trade creditors also owed money.

Construction manager Simon Graye said the QBCC's licence suspension had made the decision for the company to go into liquidation.

"We were of the view until that point that we could continue on," Mr Graye said.

"Overall it has been a difficult 12 months trading compared with previous years."

He said the question regarding assets and liabilities would be answered by the liquidators.

He said it would largely depend on being able to realise both the assets of the company and what was owed to it.

GSG Contracting started on the Sunshine Coast in 2013 prior to which Mr Graye operated a sub-contracting business.

"At the moment I retain a building licence," Mr Graye said.

"I'm not sure of the immediate future.

"Without a doubt we will be one of many (to go into liquidation) as the QBCC moves into businesses with smaller allowable turnover.

"A lot more."

GSG Contracting Pty Ltd construction manager Simon Graye and partner and company director, secretary and business manager Claudia Vaile. The company has entered voluntary liquidation after building regulator the QBCC suspended its licence on October 28 for failing minimum financial requirements.
GSG Contracting Pty Ltd construction manager Simon Graye and partner and company director, secretary and business manager Claudia Vaile. The company has entered voluntary liquidation after building regulator the QBCC suspended its licence on October 28 for failing minimum financial requirements.

The high-profile builder was a sponsor of The Steps Grand Winter Ball, Make A Wish Australia, Falcons Footy Rugby League For Children of Different Abilities, the Maroochydore-Coolum Rugby League Football Club, Neighbours Aid Stores Inc and the Sunshine Coast Latin Dance Festival and Charity Ball.

Mr Graye is president of the Maroochydore-Coolum Swans Rugby League Club.

GSG Contracting held a Category 4 QBCC licence which allowed an annual turnover of between $30 million and $60 million.

A QBCC spokesman said the regulator had received 19 monies-owed complaints in January, 12 of which had been paid in full and closed.

Another four had been in genuine dispute, one had been part paid and two remained active involving a total $12,000.

Despite its allowable turnover, GSG Contracting Pty Ltd's total 2018-19 revenue had been only $7 million and $14 million the previous year.

The QBCC spokesman said under a new Minimum Financial Reporting regime GSG had submitted required documents ahead of the March deadline.

An audit of those documents is ongoing.

"Even if a licence has been cancelled, the QBCC has the ability to examine financial information that has been previously provided by or on behalf of the cancelled licensee," the spokesman said.

The QBCC has started action to cancel the company licence, and action against the director which could result in exclusion from the building industry for three years.

GSG Contracting Pty Ltd listed Claudia Natasha Mendonca Vaille as company director and secretary. She was its business manager.

Mr Graye, Ms Vaille's partner, was also its building nominee.

He retains a self-certification level two licence that allows him to do work to an annual turnover of $800,000.

GSG Contracting Pty Ltd on its website described itself as "specialists in multi-residential construction and commercial upgrades and maintenance".

"With no job 'too big', or 'too small', we are equipped for almost any commercial project and pride ourselves on being reliable and easy to deal with," the website stated.

"Through our partnerships with government clients, private developers and aged care operators across the state, we have quickly gained recognition as a leading building company in Queensland."

It held a State Government Pre-Qualified Contractor Level 3 ranking

A spokesman for the Department of Housing and Public Works said the company had been made inactive on the Pre-Qualified Contractor register after its licence was suspended.

"The department can confirm GSG Contracting Pty Ltd has undertaken projects under contract to QBuild," he said.

"While there are no current projects under construction, four have reached practical completion within the past 12 months.

"The values of these projects range from $424,227.10 (GST exclusive) to $838,296.39 (GST exclusive).

"Practical completion for the last of these projects occurred on 14 October 2019."

The building regulator first moved against the company on October 14, imposing suspension for non-payment of debts.

That suspension was lifted on October 15 but then reimposed on October 28 for failure to satisfy the financial requirements of its licence.

The department spokesman said the government undertook a PQC Financial Capacity Assessment on contractors prior to the award of a building contract for over $1 million. Additional financial checks may be undertaken, irrespective of the project value.

Mr Graye, as GSG Contracting spokesman, has been contacted for comment.


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