Work on stage three of the Rufous Street Precinct at Peregian has been placed in limbo by the collapse of builder Ri-Con Contractors Pty Ltd.
Work on stage three of the Rufous Street Precinct at Peregian has been placed in limbo by the collapse of builder Ri-Con Contractors Pty Ltd.

$5.2m council project in limbo after builder’s collapse

NOOSA Council says it is committed to delivering the $5.2 million Rufous St Stage 3 project at Peregian despite the liquidation of the company awarded the tender to build it.

Ri-Con Contractors Pty Ltd was placed into liquidation on Monday with the appointment of Worrells Solvency and Forensic Accountants.

Noosa Council failed to respond to questions about why it had not chosen to require builders to have Project Bank Accounts to protect subcontractor payments on all its work.

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The Queensland Government has trialled the approach to payment security in the construction industry and has committed to their implementation.

Acting Director for Community Services Ashley Saward said in a statement the company's failure was deeply disappointing for the community.

"It's distressing for the workers, subcontractors and other local businesses, and of course for the broader community who will suffer a delay to the delivery of community assets as a result," he said.

"Ri-Con had done some great work on a number of Noosa Council community projects.

"This included the new Peregian Beach toilet amenities, the roof and deck works at the Noosa Aquatic Centre, Noosa Main Beach boardwalk and the recently completed carpark at Peregian Beach.

"Council diligently assesses all tender submissions prior to awarding contracts and where possible looks to support local businesses.

"We had a great working relationship with Ri-Con staff, so the loss of jobs in the community and the flow-on impact to subcontractors is obviously upsetting."

Ri-Con was due to start work on the Community House as part of the Rufous St Stage 3 Project.

That has now been put on hold while Noosa Council secures advice on the impact of the insolvency and the process to appoint a new contractor.

The Rufous St project was jointly funded by the federal, state and local governments.

"Any subcontractors to Ri-Con who have not been paid are encouraged to seek independent legal advice," Mr Saward said.



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