The Maryborough City Hall reopening earlier this year with a view of the new timber floors.
The Maryborough City Hall reopening earlier this year with a view of the new timber floors. Alistair Brightman

Subbies need law review: Bay MP

STATE Member for Hervey Bay Ted Sorensen has called for a review of building and construction laws after local subbies were left in the lurch when the main contractor for a council renovation went bust.

GSG Contracting, which won the Maryborough City Hall renovation tender, went into voluntary liquidation last month before paying Fraser Coast subcontractors for their work on the heritage site.

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Mr Sorensen said the Building Industry Fairness (Security of Payment) Bill passed in 2017 was meant to "stop things like this happening".

He backed a Commission of Inquiry into Queensland's building industry, which LNP Leader Deb Frecklington promised she would call earlier this year, if the party was elected in October 2020.

"I think the QBCC needs to have more funding to have the resources they need to probe and investigate why things like this keep happening," Mr Sorensen said.

Maryborough MP Bruce Saunders said he had referred the matter to the Minister for Housing and Public Works, Mick de Brenni. The minister's office confirmed all the information had been given to the Queensland Building and Construction Commission.

The Chronicle understands the QBCC investigation into the licensee's accountant for allegedly "providing false or misleading financial information to the QBCC" is ongoing.

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GSG Contracting construction manager Simon Graye previously told the Chronicle when he took the Maryborough City Hall contract he had no idea the company would go into liquidation.

"It wasn't our decision (to go into liquidation), it was the Queensland Building and Construction Commission," he said.

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The firm's high-level Queensland Building and Construction Commission licence was suspended on October 28 for failing Minimum Financial Requirements and its State Government Pre-Qualified Contractor status has been made inactive.