Builder placed into administration owing subbies up to $400,000
A Brisbane-based construction company that had prominent clients such as KFC, Guzman y Gomez, and Hungry Jacks has collapsed, leaving numerous subcontractors owed up to $400,000.
The company in question, DCB Developments, was placed under receivership and management by Jason Stone and Paul Allen of PKF Melbourne, following weeks of uncertainty surrounding the fate of the 15-year-old firm, according to a report by The Australian.
DCB Developments primarily specialised in retail and commercial construction and was actively involved in ongoing projects, including the $60 million Currumbin Service Centre by Leda Development. The development encompasses several amenities, such as a drive-thru Zarraffa’s Coffee shop, KFC outlet, Shell service station, Coles Express, 24/7 Gymnasium, and a Storage King. However, with the company's collapse, subcontractors involved in these projects have come forward, claiming substantial unpaid dues.
According to some subcontractors, they are collectively owed hundreds of thousands of dollars by DCB Developments, The Australian reported. One contractor has specifically mentioned being owed around $400,000. PKF Melbourne administrators are investigating these claims, the publication said.
In an automated email response to The Australian, DCB Developments confirmed that it has ceased trading. The company outlined its collaboration with a non-appointed receiver and an administrator to determine the subsequent course of action. Affected parties have been assured that they will receive updates regarding the resolution in due time.
Subcontractors have said there were delays in receiving payments from DCB Developments. It has been reported that some subcontractors were informed that funds from the Currumbin project had not yet been received, according to The Australian.
Read more: Victoria construction sector in crisis amid hundreds of company failures
Australian Securities and Investments Commission documents showed the existence of another company called DCB Dev Pty Ltd, which shares the same address as DCB Developments. This newly established company, directed by DCB Development's general manager Christian Bright, is also in the process of voluntary liquidation, The Australian reported.
DCB is the latest in a string of builder collapses across the country. According to ASIC data, the sector has seen a 75% increase in insolvencies over the past year.
Jon Davies, CEO of the Australian Constructors Association (ACA), told The Australian that productivity performance in the construction sector is “among the worst.”
“On the current trajectory, we will simply be unable to deliver the current pipeline of new energy, housing, defence, transport and social infrastructure in a timely manner,” Davies said.
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