Tagara Builders' liquidation puts sub-contractor's business at risk, forces staff lay-offs

Construction of Murray Bridge shopping complex halted, leaving 150 out of work and sub contractors unpaid: union Posted Fri at 9:39am Aaron Cartledge said worksite changes were overdue Photo: CFMEU secretary Aaron Cartledge said up to a dozen sub contractors have not been paid. Map: Murray Bridge 5253 Construction of a shopping complex in Murray Bridge has been halted, leaving about 150 workers in the dark amid claims sub contractors have not been paid for at least three months, a union says. The workers were told to stop work on Thursday morning and do not know when they will be allowed back on site. The complex is being built by South Australian company Tagara and has been under construction since mid 2014. Construction, Forestry, Mining and Energy Union (CFMEU) secretary Aaron Cartledge said up to a dozen sub contractors have not been paid for their work at the complex for at least three months. This is yet again another builder who gets into financial problems and along the way burns a number of those small sub contractors. CFMEU secretary Aaron Cartledge "This has been a saga over that last few weeks where they (sub contractors) had been demanding payment and payment wasn't coming, so it's come to a head this morning," Mr Cartledge said. "We've got real fears for those small sub contractors who are owed hundreds of thousands of dollars. "This is yet again another builder who gets into financial problems and along the way burns a number of those small sub contractors. "What they're telling me is some of them are owed up to $700,000." Master Builders Association chief executive John Stokes said the company was working through some financial matters. "We'll have a clearer understanding of the position of Tagara next week some time," he said. Mr Cartledge said other building sites could also be affected as Tagara has 14 different projects across the state. "These sorts of events can start a snowball effect on to other projects," Mr Cartledge said. Mr Cartledge said the incident highlighted problems in the industry regarding payments when a company is in financial trouble. "There needs to be a look at these sorts of projects that builders pay money, progress claims, into a trust fund so that money is held in a trust for sub contractors and that they actually get some preference to that trust fund if there is financial trouble," he said. Tagara's managing director Tullio Tagliaferri is also the president of the Master Builders Association. From other news sites: •Adelaide Now: Sub contractors walk off the job as major Adelaide builder owes "hundreds of thousands" in fees to workers at Murray Bridge shopping centre =================================== Tagara Builders' liquidation puts sub-contractor's business at risk, forces staff lay-offs Posted about 2 hours ago Related Story: Tagara Builders enters liquidation following claims of unpaid workers Related Story: 150 out of work as shopping complex construction stops in SA: union Map: SA An Adelaide sub-contractor who says he is owed tens of thousands of dollars by the failed Tagara building company fears his business is at risk and he will be forced to lay off staff. The South Australian building company, which has about $70 million worth of projects across the state, was put into liquidation last week. Tagara Builders managing director Tullio Tagliaferri also stepped down from his position as Master Builders Association South Australia president. Construction, Forestry, Mining and Energy Union (CFMEU) said while dozens of workers would be directly affected, it would put a strain of hundreds of sub-contractors who were working on their projects. One sub-contractor, who wants to remain anonymous, said he would have to reduce his workforce from 18 to eight, but was hopeful he would find more work for them. "Look, you get a relationship with your staff and I'd like to try and work on, if that's at all possible, because of the relationship you have with your workers," he said. It's extremely nervous, it's like playing roulette. There's some builders out there that just take advantage of you. Tagara sub-contractor "They've got families and responsibilities to mortgages and payments and whatever and the way the industry is at present there's just no work outside, they just can't get another job." He said he has not been paid by Tagara Builders for several months, and has considered leaving the industry because of the uncertainty of working with building companies. "It's extremely nervous, it's like playing roulette. There's some builders out there that just take advantage of you if you're not up to speed as far as the laws are concerned and they just take money off you without any reason whatsoever and then you've got to try and fight it," he said. "Because there's no certainties of whether or not they're going to go through. If they go bankrupt, we're basically finished, we get nothing." SA building industry 'in turmoil' John Stokes from the Master Builder's Association said the collapse of Tagara Builders was a sign that the building industry was in turmoil in South Australia. The industry is pretty much in crisis and unfortunately what's happened in the Tagara case is one of the sort of snapshots of what can happen. John Stokes, Master Builders Association Mr Stokes said construction work in commercial building was down 23 per cent from five years ago. He has called on the Government to urgently re-stimulate the ailing industry. "The industry is pretty much in crisis and unfortunately what's happened in the Tagara case is one of the sort of snapshots of what can happen when the building industry is in crisis and perhaps isn't getting the support it needs," Mr Stokes said. The liquidator is conducting an assessment of Tagara's current projects. CFMEU secretary Aaron Cartledge has called for legislative reforms to force builders to place money into trust for sub-contractors in case their business fails. He said Tagara going into liquidation could leave dozens of sub-contractors out of pocket. "We believe there's probably 50 or 60 sub-contractors who all employ building workers," he said. "So there's hundreds of building workers affected by this and a number of business would probably suffer financial hardship because of the money that's outstanding." =============================================================== Construction of Murray Bridge shopping complex halted, leaving 150 out of work and sub contractors unpaid: union Posted Fri at 9:39am Aaron Cartledge said worksite changes were overdue Photo: CFMEU secretary Aaron Cartledge said up to a dozen sub contractors have not been paid. Map: Murray Bridge 5253 Construction of a shopping complex in Murray Bridge has been halted, leaving about 150 workers in the dark amid claims sub contractors have not been paid for at least three months, a union says. The workers were told to stop work on Thursday morning and do not know when they will be allowed back on site. The complex is being built by South Australian company Tagara and has been under construction since mid 2014. Construction, Forestry, Mining and Energy Union (CFMEU) secretary Aaron Cartledge said up to a dozen sub contractors have not been paid for their work at the complex for at least three months. This is yet again another builder who gets into financial problems and along the way burns a number of those small sub contractors. CFMEU secretary Aaron Cartledge "This has been a saga over that last few weeks where they (sub contractors) had been demanding payment and payment wasn't coming, so it's come to a head this morning," Mr Cartledge said. "We've got real fears for those small sub contractors who are owed hundreds of thousands of dollars. "This is yet again another builder who gets into financial problems and along the way burns a number of those small sub contractors. "What they're telling me is some of them are owed up to $700,000." Master Builders Association chief executive John Stokes said the company was working through some financial matters. "We'll have a clearer understanding of the position of Tagara next week some time," he said. Mr Cartledge said other building sites could also be affected as Tagara has 14 different projects across the state. "These sorts of events can start a snowball effect on to other projects," Mr Cartledge said. Mr Cartledge said the incident highlighted problems in the industry regarding payments when a company is in financial trouble. "There needs to be a look at these sorts of projects that builders pay money, progress claims, into a trust fund so that money is held in a trust for sub contractors and that they actually get some preference to that trust fund if there is financial trouble," he said. Tagara's managing director Tullio Tagliaferri is also the president of the Master Builders Association. From other news sites: •Adelaide Now: Sub contractors walk off the job as major Adelaide builder owes "hundreds of thousands" in fees to workers at Murray Bridge shopping centre =============================