The other victims of unscrupulous building industry operators

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Consumers’ hopes, dreams and cash aren’t the only things turned to ash by phoenixing. Subcontractors are often the main victims of these unscrupulous operators; left millions of dollars out of pocket in unpaid fees with no avenue for redress. | OPINION

Consumers’ hopes, dreams and hard-earned cash aren’t the only things turned to ash by phoenixing, a practice which is all too common in the construction industry and sees companies go into liquidation to avoid paying bills only to re-emerge weeks or even days later under a new name and ABN.

Typically, on a project there is a lead contractor or developer that tenders for all the work involved in a development. Once successful, this party then divides up the work required on the project and subcontracts it out to specialist firms – an electrical contractor gets the electrical work, the glaziers get glass, and so on.

That this can still go on shows we have a long way to go before we will be close to restoring trust in the construction sector.

 

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