Builder collapses owing subbies $420k
A Brisbane building company has gone under owing close to half a million dollars following a costly dispute with a subcontractor.
Newstead-based Arcren Building was last week placed in liquidation with Bill Robson, of Robson Cotter Insolvency Group.
According to a report to creditors field with ASIC Arcren owes contractors including electricians, plumbers, steel and concrete suppliers more than $420,000.
Arcren claims in turn it is owed about $600,000 in relation to what are described as "inflated claims" from a civil works contractor building a warehouse for the firm at Virginia.
Arcren, whose directors are Matthew Flanagan and Matthew Lennon, was registered in 2014 and according to the Queensland Building and Construction Commission (QBCC) records had undertaken work valued in excess of $2.2m in the past five years.
Arcen's building licence was cancelled at its own request last September after the company ran out of funds to pursue the money it claims it is owed.
In June last year, a company called Arcren Residential, which shares the same business address as Arcren Building, was set up with Mr Flanagan listed as the QBCC nominee.
All licensed building companies must have at least one nominee who is a qualified builder.
Arcren Residential has completed five projects this financial year valued at $1.02m.
Mr Flanagan said Arcren Residential was a separate company run by his son.
The QBCC said it would begin action in response to the liquidation.
"As liquidators have been appointed to Arcren Building Pty Ltd, the QBCC will begin licence cancellation and exclusion action against Mr Flanagan," a spokesman said.
"This is a legal process that could see Mr Flanagan excluded from the industry for three years."
Originally published as Brisbane builder collapses owing subbies $420k