Oz PCH – Subbies not getting paid…never!
I saw this in this week’s The Western Australian and thought it worth a share…
If the print is too small to read is summaries that JHG are submitting false statutory payment declarations to the State Government of WA (the client). This particular subbie is owed $335k for works completed and there are others who also claim they are owed for work but are reluctant to speak out while they hope their disputes can still be resolved.
There is also talk about the façade subbie, Yuanda who are reported to be owed $12 million. However, this is due to a dispute over a number of faulty/damaged panels. I think JHG are worried that the cost involved of replacing so many panels is not worth what Yuanda would stem to lose and so fear they would just walk away and not bother – hence JHG withholding payment – which we all know, to use Australian slang, is just not cricket.
The devil will be in the detail and the report goes on to say that the Auditor-General’s review found JHG had presented “reasonable” grounds why amounts claimed by subcontractors had not been paid.
Holdfast Training Services Trial Blog 
Scott looks way too clean to have done enough work to be owed A$335k. Was he someone you came across when you were working at the hospital?
Nope can’t say I did.
Managed to read the first page but the ‘continued on p4’ is not provided! On the face of it I’d say there’s some very poor publicity and a failure to manage stakeholders effectively on the part of JH regardless of actuality of situations. Shame that the PM and bean counting side of the business are going to sour delivery of a reasonable piece of engineering.
Richard,
I intentionally left out the continuation column as it was going off topic and the gist of the issue had been covered already.
BMPX are pretty bad at paying their subbies as well. Although not quite to the same level as in the article. Whilst it hasn’t caused any major issues, the delaying of payments to subbies has caused some delays for services work – it should be noted that other than the weather, nothing is allowed to hold up the structural works.
1. The concrete slab scanners hadn’t been paid since the start of the project (February) and walked off site until they received full payment. They were off site for approx 2 weeks, throughout the contracts manager was assuring the services manager that the payment had been made and they should continue the work. Suffice to say that they issue was only resolved when a scan was required for structural works – maybe it was a coincidence.
2. The mechanical subbie had been involved in the ECI phase of the project and had 6 months of unpaid invoices that were with the contracts manager. There was some sort of error in their submission and the contracts manager wasn’t going to make a payment until they were submitted correctly, although he didn’t tell anyone this until the subbie threatened to walk off site.
3. A subbie refused to submit an invoice for some last minute works as they would have to be done through the hourly rates payment process. Apparently this process is so time consuming that it wasn’t worth their time for a few hour’s of work.
After these issues I can see why on Dolly’s project they pay for things with beer. I think a few cartons of Coopers Pale Ale would smooth some things out and win back some good will.
True – though I’d go for Little Creatures – Rogers.