Main Contractors going broke Page 1 / 2

brighteyes16, Jul 1, 5:33am
Any other sub contractors been caught out, when a main contractor goes belly up. What is the latest on changing the law in an effort to protect sub contractors

survivalkiwi, Jul 1, 6:36am
How can they be protected? What ideas do you have?

dannyboy24, Jul 1, 6:53am
Im a subbie and it pisses me off when the bigboys go bellyup. you can bet they've done ok one way or another and will still have their ducks in a row somewhere

brightlights60, Jul 1, 7:18am
Mrs B here. Happened to hubby twice. Twice we had to put a hefty dose on our mortgage to pay our bills, while the instigator (buiding company) directors claimed "directors fees" and drove around in late model vehicles. Both times they went on to open new companies, no punishment whatsoever. Makes me feel sick.

dannyboy24, Jul 1, 7:42am
VW Toureg's?

dannyboy24, Jul 1, 7:54am
Their late model vehicles? VW Touregs?

ryanm2, Jul 1, 7:58am
at least spell them correctly.

survivalkiwi, Jul 1, 8:01am
Oh great another retired school teacher on the TMMB.

drcjp, Jul 1, 9:05am
I believe their called VW ToeRags.

brighteyes16, Jul 1, 9:19am
Maybe something like what I believe they have in Australia where the main contractor is not paid directly, but payment is held in a trust.

pooks3, Jul 1, 9:28am
Yes it's happened to us twice too, we put ours n mortgage and both times it was building companies, the law needs to be changed so they are never allowed to run/ own a business again, sick of them ripping people off, spending up large, hiding money, then going bust then doing it all over again.

helsbels2, Jul 1, 10:08am
Even that dosen't work we got stung by a guy who was banned from being a director of a company for 5 years but still was only 2 years later. Ministry looked into it but as far as I know he claimed he wasn't the director and got away with it.

pooks3, Jul 1, 10:59am
They should be made to sell everything to pay people, and if they do it a second time, it should be jail time too

survivalkiwi, Jul 1, 6:22pm
That would work if they have priced the job correctly. Unfortunatly most contracters go broke from underpricing jobs.

survivalkiwi, Jul 1, 6:29pm
I have known a few guys over the years who have gone broke. They did loose everything. Including house ,cars and in two cases wife and kids.
It is only seems to be the big ones such as Mainzeal who get away with it. (shiny shoe directers).
Also one I know went tits up from a client not paying. Unfortunatly once a company goes broke there it no money to pay people to chase those clients. So they are the winner.
The whole system needs an overhall but what would really work?

ryanm2, Jul 1, 7:25pm
ts hard to protect the subbies, at least we should be able to protect those that pay deposits for houses etc, that money should be held in trust until completion. Building companies would be able to borrow against said money when building.

gman35, Jul 1, 10:33pm
I am not involved in the building trade , but I have no problem with these directors starting up "a new company" ***As long as they (and will probably need to sell their assets/remortgage etc, which let's face it ain't going to happen because they never risk themselves) pay their previous debts off first !
(Yes, I can hear the laughter now)
Would it be fair to say most of these people generally stay in the same industry when they "re-start" ? how do they look their past creditor's in the eye when they see them ? They don't even have the grace to disappear so as not to keep "reminding" those with a deserved grudge against them.

gymee1, Jul 2, 12:49am
We almost lost our House through a company that went belly up. They owed us heaps on goods and services that we had provided luckily some of our friends borrowed money to help us out.

janbodean, Jul 2, 1:12am
Ah yes but can you pronounce it correctly?

cassina1, Jul 2, 2:19am
Maybe the subbies need to drawup contracts so they are paid more frequently so they dont loose so much if the main contractor goes broke. Thats if there is no change to the law.

ryanm2, Jul 2, 3:57am
Its pronounced 'turek' isn't it?

dannyboy24, Jul 2, 5:30am
You mean you don't know? Pfffft . "Ape"

survivalkiwi, Jul 2, 7:57am
Contracts are not worth the paper they are written on. Unless you are prepared to wait for months and months for the system to be ready to act for you.

ryanm2, Jul 2, 8:06am
Yeah, im pretty shamed right now. I did learn what about Saharan tribal culture though.

denlah, Jul 2, 8:37am
Main contractors are ponzi operators pricing jobs with no margin to gain work paying out less than they get in at any one time while claiming a paycheck the math doesn't work does it.

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