Building regulator warning about builder’s financial status – Modco Residential Pty Ltd
Building and Energy has issued a warning to consumers, subcontractors and suppliers about the status of registered building contractor Modco Residential Pty Ltd (BC103549).
Building and Energy – WA’s building industry regulator – has received information from several owners, subcontractors and suppliers giving rise to concerns about the builder’s capacity to pay its debts as and when they fall due.
Building and Energy has received reports that, in some cases, no work is taking place and that progress payments are being demanded well prior to the work reaching the stage at which the payments are due. There are also reports of Modco subcontractors not receiving payment for services provided and a number of court actions for unpaid debts.
“The fact that there are several court actions against Modco as well as reports about delays in completing building work are strong indications that the company may be under significant financial stress,” Building and Energy Executive Director Saj Abdoolakhan said.
Building and Energy is also investigating whether the company’s building services are being properly managed and supervised.
“All registered building contractors must not build without an effective nominated supervisor,” Mr Abdoolakhan said.
“They are required to notify the Building Services Board if they are no longer able to meet their financial obligations or of any change that may affect their entitlement to be registered under the Building Services (Registration) Act 2011.”
Building and Energy has made a number of attempts to communicate with both Modco’s director and nominated supervisor to fully understand the company’s financial position and be satisfied that it can meet its obligations under the Act. Unfortunately, neither has been responsive to Building and Energy’s requests for information.
“Anyone dealing with Modco should be cautious and should only give credit when the company confirms its financial position or when due diligence has been exercised to confirm that any progress payments are for works that have been completed or for goods that have been supplied,” Mr Abdoolakhan said.
In the event Modco enters external administration, affected home owners will be able to make a claim on their policy of home indemnity insurance.
Further information on making claims will be available from the insurer. In the meantime, Building and Energy will be assisting Modco’s clients through this difficult time.
Media contact: BEmedia@dmirs.wa.gov.au