Wednesday, 26 January 2011

The " risk factor " !

There is always a degree of tension between builders and the sub-contractors who provide essential building services. The " subbies " take contracts on trust that they will be paid for their work - but there is always the risk of an insolvency leaving them stranded and out of pocket.

Just this situation has occurred at two Housing Commission sites in Tarrawanna and Towradgi. The Construction, Mining and Energy union ( CFME) estimates that the subbies on these jobs are owed about $ 1.4 million.

That is enough to send several sub-contracting firms to the wall. They have provided the base materials and paid their workers for the work done and a loss of that nature will either send them broke - or at least cripple their business for years.

Had these jobs been private homes for ordinary members of the public the insolvency would be just " bad luck ". The subbies would have had no recourse other than to accept the loss. They would have had to accept whatever recovery the receiver could manage, even if this was just a few cents in each dollar owed.

But these cases are different. The work has been a contract by the Housing Commission - a government department, and the sites have been declared " black " until someone - presumably the deep pockets of the state government - cough up the missing money.

No remedial work will be permitted by another builder to finish the jobs. It will become a classical standoff between grieving subbies, a militant union - and a hapless government department which is subjected to all the pressures of politics to make everyone happy.

Nobody wishes to see good, honest subbies suffer - but the only way this mess can be resolved requires an ex-gratia payment from the public purse.

Such is the way of politics !

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