Subbies and trade creditors were left owed more than $3.6 million when Ri-Con entered administration in January. Pictured is Ri-Con director John Jenkins.
Subbies and trade creditors were left owed more than $3.6 million when Ri-Con entered administration in January. Pictured is Ri-Con director John Jenkins.

Subbie owed $200k slams councils after builder collapse

A SUBCONTRACTOR owed $200,000 by failed builder Ri-Con Contractors Pty Ltd on three local government jobs has warned the councils involved will be held to account.

Penfold Projects boss Todd Penfold said subcontractors should feel safe they would be paid when doing work on government projects.

"Why should the public enjoy these facilities at the expense of my company and others?" Mr Penfold said.

Subcontract and trade creditors were left owed more than $3.6 million when Ri-Con entered administration in January.

Sunshine Coast Council last week voted against a push by Cr Greg Rogerson (Div 10) that the CEO investigate and report in March on the immediate introduction of Project Trust Accounts for all its contracts to protect payments to subcontractors. Instead there was unanimous support for the report to come to the May meeting of the new council after elections on March 28.

The State Government's plans to roll out payment security legislation do not require local authorities to introduce Project Trust Accounts until July 1, 2022.

Cr Rogerson said he was bitterly disappointed at his colleagues' failure to support his motion.

Mr Penfold has been speaking with other businesses that have been damaged by building companies that entered liquidation while working on government projects.

"There's definitely a pattern of neglect," he said.

"Councils have failed to do due diligence.

"Every builder council engages should have higher levels of financial capacity.

"The councils are behaving like private enterprise, trying to move on without care."