Canberra firm Urban Contractors has been placed into liquidation with debts of more than $940,000, just months after resolving a lengthy dispute over construction of ASIO's new headquarters.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Liquidators Kazar Slaven were appointed to the firm on April 1 and all staff have had their employment terminated. Calls to the company's Pialligo offices were answered by a recorded message confirming the liquidation on Tuesday.
Urban Contractors general manager Petar Johnson, pictured, could not be reached. The landscaping and earthworks company first went into administration in October 2012 during a legal battle with Lend Lease over the $700 million ASIO building.
At that time the company had up to $6 million in debts to local builders and 73 staff, and was believed to have traded while insolvent, owing the ACT government $400,000 for the dumping of asbestos-contaminated soil from the site.
One subcontractor who asked not to be named said the ACT government should have done more to monitor the firm's activities.
He said his company was owed $50,000. ''A lot more small companies are going to get caught again by this. The liquidators aren't saying much at this point,'' he said.
After emerging from the previous administration process in October 2013, Mr Johnson said parties to the dispute had reached an amicable settlement.
Predicting growth for the firm, Mr Johnson said Urban's most significant challenge had been restrictions on government contracts due to the ACT government's pre-qualification requirement for tenders.
The ASIO building overlooking Lake Burley Griffin was officially opened by former prime minister Kevin Rudd in July 2013, however, the intelligence agency is still yet to take possession of the completed site.
About 2000 ASIO staff will eventually be based in the Parkes Way building, which is believed to be about $170 million over budget.
Construction has been plagued by delays and security concerns, including the alleged leaking of plans in a Chinese cyber attack last year.
Liquidator Henry Kazar said efforts to assess Urban Contractors' assets were under way.
''There are employees owed about $150,000 and the ordinary unsecured creditors are owed about $790,000,'' he said.
''We're assessing the company's ability to continue with any works on hand with the view of minimising any disruption to those works.''
Mr Kazar said the firm's involvement on the ASIO site had been the genesis of its impaired financial situation and it had recently suffered from a lack of work in Canberra.
''There's just not enough work to go around at the moment. That's where it all started. In terms of administration, they successfully complied with the deed of company arrangement that was entered into back then.
''That deed had been completed and fully dealt with late last year and the reason for its current position is simply a lack of work.''
He said employees would be lodging claims with a government scheme, which guarantees employment entitlement.
A report to creditors is expected to be issued this week and a meeting for stakeholders will take place on or around April 16.
