Builders group warns against restarting

A construction-industry watchdog has warned subcontractors they may not benefit if they return to Hartner sites.

The Building Subcontractors Federation has set up a freephone number to gather information on what subcontractors are owed so it can begin to assess the damage done to the industry.

Subcontractors should be careful for whom they work, the federation has warned.

"If you have been approached to replace an existing subcontractor, ask the original subcontractor why he has been overlooked," said federation executive officer Peter Degerholm.

"Ask yourself whether the short-term gain for your company is in the long-term interests of anyone other than the developer or the bank.

There have been too many liquidations in which the failure of one builder has caused financial hardship and losses for hundreds of subcontractors.

"The first lesson is that the industry must act as one in rejecting the continuing company failures and the poor payment practices across the industry that have allowed Hartner to affect the future of so many companies and individuals."

Pledging support for receiver John Waller of PricewaterhouseCoopers, Mr Degerholm raised questions about work on other projects where the builder had gone under.

He cited the example of subcontractors who went back to work on Shed 24 on Auckland's Princes Wharf following the collapse of its head contractor and builder Goodall ABL in March last year.

They had rushed in, hoping that completing the work would improve the prospects of their debts being paid.



Subcontractors still on any Hartner sites should ensure payment was guaranteed.

"You also need disclosure as to the prospects of payment of your arrears. Only then can you be certain that continuing work is in the best interests of you and your company."

The Building Subcontractors Federation represents 4000 trade associations and companies.