ARTICLE · 17 APRIL 2017

Raw deal for subcontractors in Builton collapse

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External administrators were appointed to construction company, Builton, following an application for winding up.

AustraliaInsolvency/Bankruptcy/Re-Structuring

Murray Thornhill

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Today, external administrators were appointed to construction company, Builton, following an unpaid subcontractor's application to wind Builton up in insolvency.

Where there is one unpaid subcontractor, others typically follow. Then there are the owners of the twelve Perth-based developments that Builton cannot afford to finish and the employees of the collapsed builder who were reportedly told last Friday not to turn up to work on Monday.

There are currently no laws to protect subcontractors' right to be paid by insolvent builders, outside of government projects. As a result, subcontractors are often left with nothing after the Tax Office, banks, employees, trade suppliers and plant hire companies have taken their share.

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