Subbies in the dark as administrators move in on Esque developer

It is understood as many as 15 subcontractors have not been paid after working on the 90-unit Esque apartment building in the Canberra suburb of Franklin.

On December 22 consultancy firm Deloitte was appointed as the administrator of the M and A Group property development company, according to documents filed with the Australian Securities and Investment Commission.

Carpenter Jeremy Solway said the M and A Group still owed him about $60,000 for work he had finished in March.

"We thought that once all the property settlements were through we would be fine," he said.

"But it just keeps getting pushed back and pushed back."

Another builder, who asked not to be named, said he was owed more than $100,000 for his work on the project.

"I've not had time off for over a year. I've worked every day on that job," he said.

"No one is willing to come back because they aren't getting paid."

A third subcontractor said he was still owed about $20,000 by the M and A Group.

"I didn't know anything about the administration. I thought we were going to be fine to be honest," he said.

Two sources familiar with the Esque situation said the total bill owed to subcontractors could be as much as $2 million.

The lawyer acting for the M and A Group, Bernard Tan, said he could not comment on the appointment of an administrator to the company.

"At this stage, we haven't been contacted by the receiver and administrator so have no comment," he said.

"However, construction of the Esque development is completed, the units plan has been registered and all except a handful of the settlements have already occurred.

"I would expect that the receiver will settle the rest of the units in the ordinary course."

Mr Tan also could not comment on the figure of $2 million that was allegedly owed to subcontractors.

Lawyer Steve Gavagna was the former solicitor for the M and A Group but said he had not spoken with the company since August this year.

Although he did not have direct knowledge of the current situation, he said a number of subcontractors had recently approached him with questions about outstanding payments.

"They've called me and I can't do anything about it," he said.

"That's only in recent weeks."

The Esque apartments have been plagued by a number of minor issues in recent months.

In June residents were shocked when they were told to pay $563 for an electricity meter prior to moving into their units.

The developer changed tack a week later, offering to pay for meters in compensation for having the wrong colour scheme in some of the apartments.

In late November a small number of residents complained after they were supplied with washing machines that they claimed did not fit in the laundry and fridges that were smaller than advertised.

"Those residents who were given free white goods will receive them," lawyer Bernard Tan said at the time of the fridge complaints.

"They are aware of an administrative mix-up before settlement. Our client will comply with the contract."