Left out in cold - Library contractors demand fair hearing

ANGRY subcontractors have demanded a meeting with Kiama Council over its handling of the $3.2 million renovation of Kiama Library, which has left 44 local businesses owed money following the collapse of Denbur Constructions.

Council really needs to listen to the people on the job, said Shellharbours Bass Electrical manager Steve OBrien, who says the subcontractors are owed in excess of $1.6 million in unpaid fees.

They (Council) cannot continue to pretend there isnt an issue, he said.

We lost a lot in this job and obviously I would like to be paid but there are people in worse situations than us. People could start losing their jobs and houses.

Wollongong-based Denbur Constructions went into voluntary administration on June 13.

For landscaper Grant Ranger (pictured, front page) the situation has put an enormous strain on his young family.

The father of three also feels let down by council.

I took the job because it was a council job and I figured it would be pretty secure, he said.

This is a small family business that has just lost $20,000. Council now has a brand new garden and I have to try and find the money to pay for it.

This has put an unbelievable stress on the family. We just dont know where we are going to find the money from.

Mr OBrien claims council has put its head in the sand over the companys collapse.

I brought the financial problems to the attention of council in writing as far back as December, while other subcontractors have advised me they made telephone contact with council representatives to voice their concerns, he said.

Kiama Council General Manager Michael Forsyth said council had made progress payments to Denbur Constructions promptly and in accordance with the contract, adding that progress claims made by the company included a statutory declaration stating that all required payments to subcontractors and employees had been made.

In December 2005 Bass Electrical wrote to Council regarding variations and the miscalculation of progress claims, those concerns were referred to the project manager, he said.

Council solicitors have since met with various subcontractors and Denburs administrator, said? Mr Forsyth.

The administrator is to issue a report to creditors in early July. Council is doing everything it can to assist in resolving the matter, he said.

Mr OBrien said councils reaction to the problem was not good enough saying it was important that this issue was raised before? ratepayers.

There is a serious fault with the system if Kiama Council can just cover themselves with a statutory declaration and forget about any other problems, he said.