Builder comes under pressure to pay up

Builder Development Delivery Construction Pty Ltd says it's committed to paying subcontractors.
Builder Development Delivery Construction Pty Ltd says it's committed to paying subcontractors.

UNDER-pressure builder Development Delivery Construction Pty Ltd says it's committed to paying subcontractors who have been agitating for their money for the past three months.

Construction manager Danny Senior said letters were sent out yesterday offering payment plans to affected subcontractors.

Trading as Ddel Constructions, its principal client is SMSF Property Capital Pty Ltd which has housing projects under way in Peregian Springs which are sold to self-managed super fund investors.

Ddel has the same business address at Level 1, 800 Kingsford Smith Dr, Eagle Farm, as SMSF Property Capital, a company linked to former Sunshine Coast builder Marc Withnall.

Mr Withnall was banned for life from the construction industry in 2006 by the Queensland Building Services Authority. He was SMSF Property Capital's company secretary from November 3, 2010, until May 15, 2013.

The company's current director and secretary is Susanne Margaret Keene.

Mr Withnall was a director of five companies that were either placed in administration or liquidation between 2004 and 2006.

He was banned from being a director, secretary or influential person of any company licensed with the then Queensland Building Services Authority.

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In 2007, the Australian Securities and Investments Commission also banned him from managing companies for three years.

Mr Senior said "mistakes have been made" but the company would not be closing its doors.

Subbies have complained they have been offered as little as 25 cents in the dollar against invoices amounting to tens of thousands of dollars.

Mr Senior said the offers should never have been made.

"The industry is extremely fickle at the moment," he said. "They could shut up shop like others have done. The payment plans won't extend for months. We are moving forward with the right personnel and will not be making the mistakes of the past."

Subcontractors say when they have rung the company no one has answered and letters sent by their lawyers remain unanswered.

Mr Senior said upper management involved in mistakes, which had included underquoting on jobs, had been shown the door.

"Those involved thought they knew more than they did," he said.

Mr Senior said he had come on board four months ago and would not be there if he thought the business would not honour its commitments.

"If I didn't believe in these guys I wouldn't be here," he said.

"Have we struggled? Yes. I understand where the subbies are coming from. The Sunshine Coast is a small economy and there has been others. We are going to come through the other side. That's what I believe."

Mr Senior said the issues were with Ddel and not SMSF Property Capital Pty Ltd.

"SMSF is the client. Ddel made a mess of it," he said.

Topics:  building business contractor

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