BSA SUSPENDS BUILDING LICENCE OF REAL PROPERTY CONSTRUCTIONS PTY LTD
Published Friday, 08 February, 2008 at 09:45 AM
Minister for Public Works, Housing and Information and Communication Technology
The Honourable Robert Schwarten
The Building Services Authority has today suspended the building licence of Sunshine Coast-based Real Property Constructions Pty Ltd (RPC) following an investigation into the company’s financial viability, Housing Minister Robert Schwarten said.
“Recent information received by the BSA indicated the company was unable to pay its debts, and was either insolvent or highly likely to become so unless new capital were injected into the business,” Mr Schwarten said.
“This did not happen so the BSA had no choice but to act.”
RPC is currently engaged in 233 building projects in Brisbane (41), the Sunshine Coast (137) and Hervey Bay (55) areas with a further 87 deposits being held.
Mr Schwarten said the BSA would be writing to affected consumers to inform them of their rights and entitlements and advising them of the steps they should now take.
BSA General Manager Ian Jennings said the BSA was concerned that if RPC were to continue trading there was a real likelihood that serious financial loss would be inflicted on consumers, subcontractors and suppliers.
“RPC was given a final opportunity to confirm it had been able to secure the required capital injection. When RPC was unable to confirm it would receive any new capital the BSA had no option but to suspend the licence to prevent RPC from incurring further debts,” Mr Jennings said.
“RPC was given every opportunity and the BSA only took action to suspend the licence when it had no other choice. The BSA could not allow subbies to continue working on site when it was extremely unlikely they would ever be paid for their work”.
RPC’s licence suspension means it must immediately cease carrying out any building work, including completing existing jobs.
“Unfortunately, consumers, subcontractors and suppliers who have a contract with RPC will be affected by the company’s licence suspension,“ Mr Jennings said.
“The BSA will work with affected consumers to assess their entitlements under BSA’s Statutory Home Warranty Scheme and do all that it can to minimise the impact of the suspension.
“Queensland consumers are fortunate that they have access to the best home warranty insurance in the country.
“If this company were to fail in NSW or Victoria the consumers would have virtually no recourse to insurance and be forced to resolve these problems on their own.”
Mr Jennings said the BSA’s 1300 number would be operational from 9am to 4pm on Saturday 9 February and from 8am to 12pm on Sunday 10 February.
“Any affected consumers are urged to phone 1300 272 272 to register their details with the BSA,” he said.
“From Monday, a specially appointed BSA task force operating from Brisbane, the Sunshine Coast and Maryborough will be available to meet with consumers one-on-one to discuss their entitlements under the BSA’s Statutory Home Warranty Insurance Scheme.
“In the coming weeks we expect to meet with all affected consumers, arrange inspections of all sites and organise the completion of houses, enabling consumers to get their projects back on track.”
Media contact: Minister’s office – (07) 3237 1832
BSA – (07) 3404 3027
“Recent information received by the BSA indicated the company was unable to pay its debts, and was either insolvent or highly likely to become so unless new capital were injected into the business,” Mr Schwarten said.
“This did not happen so the BSA had no choice but to act.”
RPC is currently engaged in 233 building projects in Brisbane (41), the Sunshine Coast (137) and Hervey Bay (55) areas with a further 87 deposits being held.
Mr Schwarten said the BSA would be writing to affected consumers to inform them of their rights and entitlements and advising them of the steps they should now take.
BSA General Manager Ian Jennings said the BSA was concerned that if RPC were to continue trading there was a real likelihood that serious financial loss would be inflicted on consumers, subcontractors and suppliers.
“RPC was given a final opportunity to confirm it had been able to secure the required capital injection. When RPC was unable to confirm it would receive any new capital the BSA had no option but to suspend the licence to prevent RPC from incurring further debts,” Mr Jennings said.
“RPC was given every opportunity and the BSA only took action to suspend the licence when it had no other choice. The BSA could not allow subbies to continue working on site when it was extremely unlikely they would ever be paid for their work”.
RPC’s licence suspension means it must immediately cease carrying out any building work, including completing existing jobs.
“Unfortunately, consumers, subcontractors and suppliers who have a contract with RPC will be affected by the company’s licence suspension,“ Mr Jennings said.
“The BSA will work with affected consumers to assess their entitlements under BSA’s Statutory Home Warranty Scheme and do all that it can to minimise the impact of the suspension.
“Queensland consumers are fortunate that they have access to the best home warranty insurance in the country.
“If this company were to fail in NSW or Victoria the consumers would have virtually no recourse to insurance and be forced to resolve these problems on their own.”
Mr Jennings said the BSA’s 1300 number would be operational from 9am to 4pm on Saturday 9 February and from 8am to 12pm on Sunday 10 February.
“Any affected consumers are urged to phone 1300 272 272 to register their details with the BSA,” he said.
“From Monday, a specially appointed BSA task force operating from Brisbane, the Sunshine Coast and Maryborough will be available to meet with consumers one-on-one to discuss their entitlements under the BSA’s Statutory Home Warranty Insurance Scheme.
“In the coming weeks we expect to meet with all affected consumers, arrange inspections of all sites and organise the completion of houses, enabling consumers to get their projects back on track.”
Media contact: Minister’s office – (07) 3237 1832
BSA – (07) 3404 3027