Tradies left $1m out of pocket after building firm collapse

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Collapses within the building industry are all too common these days, leaving subcontractors out of pocket.

One group of small business owners is pleading for help after the company it was contracted to went bust on a state government project, owing them more than $1 million.

Rork Projects was contracted by Transport for NSW to refurbish one building at a depot in Yennora, in Western Sydney, and extend another one.

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The subcontractors did the work – completing the first building – and were about to start on the second.

Rork then went into liquidation.

Electrical contractor Nikolai Pavlovic is owed $200,000 for work done and another $160,000 for lighting and switchboards that can only be used on that second stage – meaning he can't return any of it.

"We had all our gear, everything specifically made to order for this job, that was three months ago. There's been no contact from Transport (for NSW)," he said.

"No contact from anyone, with bills to pay.

"These days in the construction industry you're working on tiny margins so it's a massive hit. It's a kick in the guts."

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Aside from recouping the money they're owed, they now want to work on stage two using the material they've already bought – or have the next project manager buy it from them.

Concreter Tony Habib is owed $560,000.

"We bought lots of concrete and steel. We have our houses under guarantor," he said.

"So, if I don't pay these companies, I will be losing my houses and my family will be living on the street.

"It's a government job. They should look after the trades."

The subcontractors on the site, including another said to be owed close to $70,000, were hardly the only ones left high and dry.

Rork had more than 60 active projects across four states when it collapsed and many of them were government contracts.

But just last year, Rork and its employees were living it up – holding their annual conference on the Gold Coast – all dressed to party in specially made Hawaiian outfits, with Indigenous experiences, a fancy dress event and more.

In March this year, it was all over but the subcontractors were still being told they'd be paid days before the company folded.

Transport for NSW said it had also been impacted by the collapse and must protect taxpayers but promised to meet the tradies urgently to ensure they were looked after.

"We do want to make sure they're not left out of pocket," secretary Josh Murray said.

"We're doing that with the administrator and where we can free up equipment or materials on site, we'll do that as quickly as possible."