Company’s struggles prior to collapse revealed
THE struggles of a major Coast builder prior to its collapse have been revealed by the state's construction industry watchdog.
A Queensland Building and Construction Commission spokesman confirmed there had been nine moneys-owed complaints against RGD Group Pty Ltd, totalling more than $150,000, received this year.
Two of those were finalised resulting in payments of more than $18,000 to subcontractors while seven remained under investigation.
The spokesman said "a number" of complaints related to the same Brisbane project, Virtuoso Apartments in West End.
He cited onerous lending conditions, the effects of coronavirus and "a financially catastrophic Brisbane project" as factors in the company's collapse.
FTI Consulting's John Park was appointed as administrator of the companies.
Australian Securities and Investments Commission documents showed the sole shareholder of RGD Group Pty Ltd was Gregory Clark.
His Minyama Island address was the same as that listed by ASIC for Darryl Clark, director of Clark Group Constructions Pty Ltd, a company registered on April 6.
The QBCC spokesman said it had received a builder licence application from Clark Group Constructions Pty Ltd, and "is aware of its apparent links to RGD Constructions Pty Ltd and RGD Group Pty Ltd".
The spokesman said the organisation would be "closely monitoring" the insolvency event underway with RGD Group, as it assessed the new licence application from Clark Group Construction in accordance with the prescribed legislative requirements.
"While RGD Group Pty Ltd holds an active builder open licence, it has external administrators appointed who are in control of the company," the spokesman said.
"Influential persons of the company will be the subject of exclusion investigation by the QBCC."
The spokesman said the QBCC would begin the legal process now administrators had been appointed to the company.
"The director, Mr Ronald Grabbe, is also the director of RGD Constructions Pty Ltd which does not hold an active QBCC licence after it was cancelled in October 2019," the spokesman said.
"Mr Grabbe is also the director of YFRGD Group Pty Ltd and this company holds an active licence.
"Mr Grabbe will be the subject of an exclusion investigation due to being a director of RGD Group Pty Ltd. If Mr Grabbe becomes an excluded person, he will be required to resign as director of YFRGD Group Pty Ltd."
An FTI Consulting spokesman said it was too soon to assess the company's affairs.
"The administrator has just started his investigation and will have more information about the state of the company in due course," he said.
In January, 2018, WorkCover Queensland accepted an enforceable undertaking from RGD Constructions in relation to an incident in March, 2015, at a work site at 13 Railway Tce, Milton.
In that incident a wall collapsed while two workers subcontracted to RGD were operating a rock breaker and excavator nearby.
Nobody was injured, but the undertaking came with a total minimum expenditure of $249,509.