Tradespeople out of $1m after building firm failure

Subcontractor Collapse: Small Business Owners Left in the Lurch

Collapses within the building industry are unfortunately common, leaving subcontractors without payment. Recently, a group of small business owners found themselves in dire straits after the company they were working for went bankrupt on a state government project, owing them over $1 million.

The subcontractors completed the first building and were ready to start on the second when the company, Rork Projects, went into liquidation leaving them in lurch. Electrician Nikolai Pavlovic, owed $200,000 for work done and $160,000 for specific materials, highlights the impact on small businesses.

These subcontractors now demand to use their materials on stage two or have them purchased by the next project manager. With other tradies owed substantial amounts, the construction industry faces another setback due to financial troubles.