Canberra's ASIO building has hit more trouble with a contractor on the job going into administration yesterday, blaming problems on the $600 million project for the business's collapse.
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The building union wants the federal government to step in and guarantee the entitlements of the 30 staff employed by Urban Contractors on the ASIO project.
Urban Contractors, an award-winning Canberra landscaping and earthworks company, called in the administrators yesterday after its contract on the ASIO site was terminated, cutting off a major cash flow source for the local firm.
The company's management says its dispute with the building's lead contractor Lend Lease is likely to end up in the courts, leaving Urban Contractors' 73 workers facing an uncertain future.
The firm's owner Mick Burgess told The Canberra Times that the financial troubles were a direct result of problems on the ASIO building.
''There's been issues on that contract all the way through. I wouldn't say it's all the builder's fault, there's been some management issues from myself, there's no two ways about that.
''But the common sense factor seems to have gone and that's a shame.''
Mr Burgess said he believed that court action against Lend Lease over the ASIO site was inevitable.
''It'll probably come to that for sure. I'll point the finger at them and they'll point the finger at me,'' he said.
The veteran landscaper said he would try to trade his way out of trouble but that there would be some job losses.
''We've been in the game for 30-odd years, done a lot of iconic jobs and its been a really good family business and we're going to work hard to survive,'' he said.
''The key staff that we've always had will keep going. We have other contracts in town and we're going to work hard and work our way through, try to look after the creditors the best way we can, but some staff will have to go.
''We want Urban Contractors re-instated because if they're not, there's going to be heaps of blokes out on the street.
''So we're going to ask the government to intervene because there's been an extremely unjust contract and they knew about it and they shouldn't accept it. There's a big issue around what's just contracting, fair contracting and what role the federal government should play in its own projects.
''They've hired a builder Lend Lease who has then gone out and imposed an extremely unjust contract on a subcontractor.''
Lend Lease said yesterday that it was ''contractually'' forbidden from discussing the ASIO site and referred inquiries to the Department of Finance and Deregulation.
The department did not respond to requests for comment before The Canberra Times' deadline.
