By XAVIER SMERDON
WYNDHAM Council projects have been thrown into limbo and subcontractors have been left to chase hundreds of thousands of dollars for unpaid work following the collapse of one of the West’s largest construction companies.
Linoc Constructions, formerly known as the Nicol Group and Nicol Building Services, has appointed SV Partners as liquidators.
John Nicol, president of the Werribee Football Club and the Committee for Wyndham, is listed as Executive Director of the Nicol Group.
Mr Nicol is also listed as Chair of the Regional Rail Link Community Reference Group and is a former City Engineer for the Shire of Werribee, now known as the City of Wyndham.
A statement from the Construction Forestry Mining and Energy Union (CFMEU) claims that the company has failed to pay more than $700,000 to subcontractors it employed.
“Work on the Haines Drive Sports Pavilion and car park in Wyndham Vale has ground to a halt, following the collapse of the council’s chosen builder, Nicol Group,” the CFMEU statement said.
“Subcontractors are owed money for work they have already completed at Haines Drive. Outstanding bills for some operators exceed $100,000 each – with the total owing believed to be over $700,000.
“The current building works are intended to provide amenities and clubrooms for users of the adjoining sports fields and improved facilities for Wyndham Vale residents. These improvements are now in serious doubt while subcontractors’ bills remain unpaid.”
One of the effected subcontractors told Star some small businesses could be forced to close as a result of the lack of payment.
“We’re hurting and some of us will not make it through,” the subcontractor said.
“We’ve got families to worry about and some of the subcontractors have had to lay staff off to try and survive.”
Wyndham Council CEO Kerry Thompson said the council became aware that the Nicol Group had appointed “liquidators” on 20 December last year.
“The Nicol Group was engaged by council to complete the Haines Drive Sports Pavilion and the third Kindergarten room at Featherbrook Community Centre,” Ms Thompson said.
“Wyndham City has made progress payments on each project for works completed. Upfront payments are not awarded.
“Approximately half of the works on the $2.19 million Haines Drive Sports Pavilion are complete and construction of the Kindergarten room is almost complete with only minor works required for full completion.
“Wyndham City is now working with the liquidators in relation to this issue. Given that this is now a legal matter, Wyndham City is not in a position to comment on the impact on creditors or other parties.”
Ms Thompson said the council’s priority was to complete the projects.
The CFMEU said it supports the effected subcontractors and called on the council to work to help them.
“Completing the pavilion works and paying money owed to subcontractors are now responsibilities of Wyndham City Council,” the statement said.
“Councillors are urged to work with the affected parties to resolve payment issues and ensure that residents of Wyndham City can use these facilities as soon as possible.”
A meeting between subcontractors, the CFMEU and Wyndham Council was scheduled for Wednesday 6 February.
Star contacted SV Partners but they did not respond.
Mr Nicol also did not comment.
