A POST on the website of Reed Constructions Australia Pty Limited confirms what Port Macquarie construction business owners Dianne and Garry Bannister feared - it has been placed in voluntary administration.
A link to a media release states Ferrier Hodgson partners John Melluish and Ryan Eagle have been appointed administrators after the company “suffered losses through some of its key contracts”.
In March this year Port News spoke with Mrs Bannister, of Garry Bannister Constructions in Lake Road, who were owed $113,000 in overdue retention funds on six Building the Education Revolution (BER) projects.
“I feel at this stage we have no chance of getting the [retention] money back,” Mrs Bannister said.
Last week the New South Wales Education Department said it did not owe Reed Construction money under the national school construction program known as the BER.
The retention money is a form of bond held from the contract to cover repairs or defects within a defined time period and is allegedly held in a trust. At this stage Recoup contractor debt recovery group has stated if money owed to subcontractors by Reed for Roads and Maritime Services (RMS)Projects is not paid, litigation will be unavoidable and compensation will be sought from RMS in a class action.
Mrs Bannister said she will be contacting Recoup today to see if [those owed money for] BER projects can join in.
There is another avenue the Bannisters will also be trying following notification from a subcontractor.
“We got a letter from an electrician who received a letter from another building contractor saying they had been guaranteed payment by IPO (Integrated Projects Office of the Federal Government) for the debt owed by Reed for BER projects at the end of June.”
“My problem is every time I try to get money out of these people it costs me more money. I’m totally frustrated that I’m putting money out with the potential to get nothing back,” Mrs Bannister said.
Some of the money owed to the Bannisters is outstanding since August last year and some was due in January.
“I’ve contacted [Port Macquarie MP] Leslie Williams and [Member for Lyne] Rob Oakeshott but neither have even given a reply.”
Mrs Bannister said some of their subcontractors were caught up in the fight and other companies on the Mid-North Coast who worked on the BER projects were owed money, too.