Home / NEWS / Collapse of Construction Company Shows Why Project Bank Accounts Needed

Collapse of Construction Company Shows Why Project Bank Accounts Needed

Master Electricians Australia has today pointed to the collapse of Brisbane based construction company CPK Constructions as to why the State Government must urgently press ahead with its Project Bank Account initiative.

The collapse of the Newstead-based builder has resulted in creditors being owed more than $3 million and leaving 4 projects around Brisbane uncompleted.

MEA Chief Executive Malcolm Richards said that the collapse will leave many sub-contractors out of pocket.

“This is devastating news for the many mum and dad sub-contracting businesses who will now be left out of pocket due to the collapse of CPK Constructions,” Mr Richards said.

“This is exactly why Project Bank Accounts need to be introduced immediately and Master Electricians calls on the State Government to fast-track this initiative.

“If Project Bank Accounts were already in place, all the subbies who have been impacted by this collapse would not be left out in the cold.”

The State Government has previously announced that laws will be introduced that will ensure security of payments for contracts worth more than $1 million.

“Recently we have seen attempts by big builders, motivated purely by their own self-interest, to scuttle this desperately needed reform,” Mr Richards said.

“Project Bank Accounts will see the days of big builders using mum and dad sub-contracting businesses as a cash cow to finance their next major project come to a crushing end.

“This is just the latest in a string of construction companies that have gone bust and in the process left subbies unpaid for work already completed and this must simply come to an end.”

Malcolm Richards is available for interview. Please phone The SAS Group on 07 3221 9222.

  • CodeofPractice-Sidebar