Jurisdiction issue threat to subcontractor payment

SUBCONTRACTORS working on embattled builder Devaugh Pty Ltd’s Kalkearni Residency project in Brookton could miss out on a State Government-brokered deal to secure payment to subcontractors on the Albany Court Complex project.

The Department of Housing and Works recently entered into an agreement with Devaugh’s admini-strator, Ferrier Hodgson, to com-plete work on the court complex, ensuring the subcontractors were fully paid.

But while funding for the Kalkearni project, which is to expand the aged care facility from 36 beds to 43 beds, is controlled by the WA Government, the project is not under the Department of Housing and Works’ jurisdiction.

A spokeswoman for Housing and Works Minister Nick Griffiths directed all enquiries regarding that project to the Department of Health.

A Department of Health spokes-woman said the project was the responsibility of the Brookton Shire.

Brookton Shire acting CEO Neil Warne said: “If it can be arranged, council would like to see the subcontractors [on the Kalkearni job] looked after the way they have been in Albany”.

Mr Warne said the council’s architect on the project, Kidd and Povey, was looking into ways to ensure the job, which is 90 per cent finished, could be completed to ensure the subcontractors were paid out in full.

QVS Shopfitters’ John Nichol, a creditor from the Kalkearni job, said he was trying to find out whether he would receive the $60,000 he claims to be owed.

Avon MLA and National Party Leader Max Trenorden, whose electorate contains the Kalkearni Residency, said he had asked the Government to pay out the contractors on the Brookton job the way it had agreed to in Albany.

“There is about a $100,000 payment due to Devaugh on that contract for December and I would much rather see that money go to the subcontractors directly,” Mr Trenorden said.

Devaugh was placed in voluntary administration on December 31, owing creditors $12 million.

The Bunbury-based company had 18 contracts worth about $60 million. At least two were funded by WA Government agencies.

Meanwhile, Lamac Plumbing and Drainage managing director Michael Lane has also hit back at claims from Devaugh managing director Merv Waugh that Lamac had been unable to pay back money it was ordered to pay to Devaugh in relation to a dispute over a bill for the South West Health Campus project.

Devaugh had been ordered to pay Lamac about $800,000 by the Supreme Court of WA until the case could go to arbitration.

“We were told to pay some of that money back to Devaugh through the arbitration, which we did,” Mr Lane said.