Griffith affordable housing builder allegedly $3 million in debt as subcontractors chase money owed

A Sydney-based builder that went into voluntary administration while constructing Griffith affordable housing projects has alleged debts of more than $3 million and still owes several tradespersons money, according to a report by the administrator.

Howlong bricklaying business owner Kyle Cofield says he is owed $42,000 for work already done.

“It hurts,” he said.

“I’ve paid $20,000 in labour, and the rest in materials and accommodation. I had six blokes working there; it was costing me $2400 a week in accommodation … I haven’t been reimbursed for it.”

Not-for-Profit Argyle Housing was donated land by Griffith City Council to construct four two-storey, two-bedroom townhouses next to the ambulance station on Wakaden Street, to provide accommodation for lower income earners.

Argyle chose Greenwich Build Pty Ltd as the principal contractor for both the Wakaden Street units and to construct a community centre at Dave Taylor Park, which supported another Argyle affordable housing development in south Griffith called Griffin Green.

The Wakaden Street project has stalled since Greenwich Build Pty Ltd went into voluntary administration on 24 February. Parramatta-based insolvency expert Graeme Beattie was appointed as the company’s administrator.

A report Mr Beattie submitted to the federal business regulator reveals Greenwich allegedly owes just over $3 million to tradespersons and $600,000 to other creditors.

“I’ve been paid for the Wakaden Street project but I still haven’t been paid for the work for the Dave Taylor Park Community Centre,” Mr Cofield said.

“I can’t get on to anyone at Greenwich – they’re uncontactable. Their website has been shut down, nobody is answering phones.”

Region has also attempted to contact Greenwich Pty Ltd without success.

Mr Cofield said the experience of working for the Sydney builder wasn’t positive.

“When I went to them to get paid, they would give it to me in dribs and drabs. They said go start this job and we’ll reimburse you for the last job. I told them I’d only start the community centre once I received payment for the Wakaden Street job,” he said.

Region understands several other tradies are owed substantial sums of money, including a plumber and an electrician.

Argyle Housing said in a statement that it paid all progress claims to Greenwich Build, which were accompanied by declarations from the company that their suppliers and contractors had been paid.

“We understand through discussions with a number of contractors that this was not the case, and strongly encourage them to engage with the administrators on these debts,” an Argyle Housing spokesperson said.

Mr Cofield says he is not optimistic that the administrator will recover enough to pay all tradies owed money.

“The company doesn’t have much cash in the bank or much left to sell,” he said.

The administrator report shows the assets of the company discovered so far, which includes just under $11,000 cash in the bank, $6000 in plant and equipment and $283,000 in associated loans. Liabilities total more than $3.6 million.

Mr Beattie has scheduled a meeting with creditors for 31 March.

Argyle Housing says it remains committed to the Wakaden Street project and will complete it with a replacement contractor.

Griffith City Council says it had no involvement in the project apart from donating the land to Argyle Housing.

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