Steve Nolan Constructions Pty Ltd External Administrators Appointed

Smith Hancock were appointed as External Administrators to Steve Nolan Constructions Pty Ltd on 4 February 2014 , see the Current ASIC Extract at RECOUP Security Of Payment Act Blog

Subcontractors set to lose $28 million.

Why is this still able to happen ?

In 2012 Reed Constructions Australia Pty Ltd went under owing subcontractors close to $100 Million.

RECOUP was instrumental in persuading Barry O’Farrell to do more to protect subcontractor entitlements being pilfered by unscrupulous builders.

Barry O’Farrell commissioned Bruce Collins QC to undertake an Enquiry into insolvency in the Building & Construction Industry.

Late January 2013 Bruce Collins released his report after months of consultation with participants from every level of the industry.

One of Mr Collins key recommendations was that Trust Accounts be established for projects into which payments from Head Contractors are held pending payment direct to Subcontractors when their progress claims become due and payable.

This would safeguard against unscrupulous and incompetent builders such as some recent cases where they have claimed for work carried out by subcontractors, received those funds from the Head Contractor but for whatever reason those funds have not made their way to the Subcontractors who provided all of the materials and carried out all of the works.

Barry O’Farrell must act soon to protect subcontractors basic moral rights for payment for their work.

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