Tim Mander ... will meet subbies hurt by collapse of Walton Construction.
Tim Mander ... will meet subbies hurt by collapse of Walton Construction.

Angry subbies to meet with Minister over Walton collapse

SUB CONTRACTORS left out of pocket to the tune of millions of dollars by the Walton Construction collapse will meet with Housing Minister Tim Mander next week to discuss their plight.

The Walton Subcontractors Collective will discuss their plight with Mr Mander on Tuesday at a meeting organised by Sunshine Coast councillor Greg Rogerson and to which Attorney General Jarrod Bleijie has been invited to attend.

Sub contractor representatives will also fly in from Townsville for the meeting which will address greater protection for those at the coal face of the construction industry

Sunshine Coast engineer Les Williams of WK Civil who heads the collective will also engage in a three-state teleconference with Lawler Draper Dillon administrator Glenn Franklin on Tuesday.

Mr Williams said yesterday that it was time there was greater recognition of the fact that sub contractors effectively bank roll the construction industry.

He said the first hint of trouble he had was when his August payment for the Nambour Coles project, worth more than $350,000, was not made at the end of August.

Sub contractors normally don't receive payment until 30 days after an invoice is submitted meaning they can be left exposed for two months of labour and materials if a builder goes broke.

When Mr Williams' wife rang Walton on September 30 to inquire where the money was she was told it looked like the company would go into administration.

"Everyone (on the Nambour Coles site) worked right through September,'' he said. "Walton was pushing everyone to get the job done.

"We bankroll the industry. That's forced on us by the big builders. Walton gets a job, hires a foreman and puts a fence around the site.''

Mr Williams said trust funds to hold sub contractor payments do not suit builders who would then have to prove they had paid sub contractors.

He questioned how many tier two builders were actually solvent and said that was a matter ASIC needed to examine thoroughly.

Sub contractors will consider class action to test whether big companies like Coles, Woolies and Aldi had undertaken proper due diligence on Walton's financial capacity to o their projects.

SPECIAL REPORT: Inside the Walton Construction collapse

WALTON TIME LINE

Dec 19, 2012: Heavily qualified 2012 financial audit released showing losses of more than $14m

APRIL: Auditor notes further losses of nearly $7m for the eight months to February 28

AUG 5: Peloton Builders and QHT Investments registered with ASIC

AUG 6: Lewton Asset Services registered with ASIC

AUG 27: Craig Walton registered with QBSA as the licensed building nominee for Peloton

SEPT 24: Rudolf Johannes Jona replaces Julian Kirzner of the Mawson Group as Peloton director

SEPT 26: Patrick McCurry (Mawson) joins Phillip Spry as RZL Holdings (Qld) director

OCT 2: Craig Walton sends statement to staff advising of impending administration

OCT 3: Walton acting marketing manager Dani Jones assumed that role at Peloton emailing staff to remove Walton signage from jobs sites

OCT 4: Walton placed under external administration of Lawler Draper Dillon

OCT 8: Former Walton Construction Qld fitout manager Michael Walsh registers with QBSA as Peloton Building licence nominee

OCT 9: Documents lodged with ASIC inform RZL shares changed from Phillip Spry to Mawson Beneficiary Pty Ltd on Sept 26

OCT 15: QHT Investments use weight of $18.9m debt purchased for $30,000 from Walton Construction to block a bid by overwhelming majority of creditors present, to replace Lawler Draper Dillon as administrators

OCT 22: Nambour Coles sub contract creditors sent advice by error that they would be paid. Peloton apologises for error saying it was because they now used Walton IT equipment.
 



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