Collapsed building company QCon Solutions failed to pay more than quarter of a million dollars to a subbie who subsequently also went bust.
Collapsed building company QCon Solutions failed to pay more than quarter of a million dollars to a subbie who subsequently also went bust.

Subbie goes bust after builder pay dispute

Collapsed building company QCon Solutions failed to pay more than quarter of a million dollars to a subbie who subsquently also went bust.

Moorooka-based QCon, which claimed 50 years' experience in the sector, was placed into liquidation this week with undisclosed debts. The case underscores the growing incidence of non-payment of subbies by builders that often leads to financial ruin across the sector.

Earlier this year, QCon was ordered by building adjudicator Peter Sarlos to pay subcontractor Harrison Civil $258,938 for water reticulation, stormwater and sewerage drainage works on a residential subdivision.

Building insolvencies remain a major issue
Building insolvencies remain a major issue

QCon claimed Harrison was not entitled to the money as there was no contract, even though Harrison provided photographic evidence of the completed works. Adjudicator Sarlos found in favour of Harrison noting there was an "oral contract" between the two parties.

Harrison, which lists its address as Eight Mile Plains, called in its own liquidators in May, owing creditors about $600,000 and blaming trading losses and lack of capital for the firm's failure. Harrison listed the QCon contract as the only debt owing to it.

QCon referred all questions about the company to liquidator Ian Currie of BRI Ferrier. Mr Ferrier did not respond to request for comment.

QCon Solutions, formely known as Australian Timber Homes, was involved in residential work as well as the construction and maintenance of schools and commercial buildings.

But the amount of work it completed plummeted in the last couple of years from more than $3 million to less than $500,000.

 

Tools down at QCon.
Tools down at QCon.


Its building licence was cancelled by the Queensland Building and Construction Commission (QBCC) earlier this year for non-payment of fees.

According to its website, QCON's founding directors "were well qualified to lead our extensive team of construction and maintenance specialists"

According to QBCC records, the company, whose sole director is Lance Brown, only completed one job in 2018/2019 worth $408,000. The previous year it finished 18 residential projects worth $3.5 million, according to the QBCC.

Originally published as Subbie goes bust after builder pay dispute


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