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CALDER DEBTS FURORE

3/11/2008 9:19:00 AM
A GROUP of local subcontractors are up in arms over the millions of dollars they say they’re owed by Calder Freeway contractor Winslow Projects.

The outstanding debts from May and June might not be paid until next March.

VicRoads has assured people that the $404 million Harcourt section of the Calder upgrade will not be delayed.

In August, VicRoads stepped in and paid subcontractors when Winslow Projects struck financial difficulties.

But central Victorian contractors say there are still millions of dollars outstanding.

One contractor owed about $80,000, who did not want to be named, told The smaller employers had felt intimidated into silence while still having to find money or excuses for their own debts.

“It’s been a circus from the beginning,’’ the contractor said.

“We have to find money for the fuel and parts and wages, but we are not in a position to pay.

“Our overdraft is stretched to the limit.’’

Winslow Projects has claimed outstanding debtors for other projects created a cash shortage.

It said arrangements had been put in place to pay 60 per cent of debts by the end of October, and a further 20 per cent by Christmas.

The disgruntled contractor said creditor meetings had left some smaller contractors in tears, while those owed less than $10,000 were not invited.

Difficulties with the final stage of the Calder Freeway are in stark contrast to the Malmsbury section, which was completed almost a year ahead of schedule.

Bendigo contractor Andy’s Earthmovers worked with Fulton Hogan on the Malmsbury section of the highway, but withdrew from the Harcourt construction in August.

General manager Andy Hoare said he was not confident more than $1 million owed would be paid under the terms of the contract.

He said small local contractors had been hit the hardest because they still had their own staff to pay, but were expected to wait more than six months for the balance of what they were owed.

“What should be a great thing for central Victoria has become a very sour and bitter experience for a lot of businesses,’’ he said.

“If we were a smaller operation it just would have destroyed us.’’

VicRoads media manager Mary Fall rejected the claims and said the project would be delivered on budget and on time for an early to mid-2009 opening.

“Since August, at Winslow’s direction, VicRoads has been paying subcontractors monthly, directly from funds we would otherwise have paid to Winslow,’’ she said.

“Winslow has previously advised VicRoads that it expects these arrangements to continue into 2009.’’

The Calder project is having a community information day next Sunday.

VicRoads, Theiss and Winslow staff will be available to answer questions from the public.

What do you think?

How has this issue affected you?

Contact The Advertiser on 5434 4470 or by email at newsdesk@bendigoadvertiser.com.au

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Comments


Date: Newest first | Oldest first
VicRoads media manager, Mary Fall what claims are you rejecting? You're missing the point here, it's not about the project being delivered on time or on budget, I'm yet to read or hear of any one disputing that. It is about creditors that are still owed millions of dollars that is owed by Winslow (Constructions or Projects) to creditors for the months of May and June for the Calder freeway works.

To all that are affected by this, and are still owed money don't be afraid to speak up, it's your money and just like us we want it and should have been paid long before now.

Now is your chance to have your say publicly.

On a final note, what did Winslow do with the progress payments from VicRoads for the months of May and June?

Mr Lockwood states that Winslows is asset rich cash flow poor. Well, start selling some assets and tidy up your financial affairs here on the freeway job. We should not have to wait for our money.

Angry creditor.

Posted by unkown on 3/11/2008 9:49:22 AM
I at one stage was in charge of all these circus clowns and while I could not get them to perform I had to move to another circus.

All these claims are true and the writing was on the wall from day one. VicRoads, however, knew this I'm sure at tender stage, but who was going to stand up and except a price that was more expensive than the other tender?

The tender selection process in the real one to blame. The government has dug its own hole and should just pay these poor smaller contractors immediately.

Mind you, this selection was to save only one million dollars I hear.

I bet it costs the taxpayers 10 times that now.

Signed, one of the 'x' ring leaders.

Posted by The ring leader on 5/11/2008 11:57:25 AM

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