❓ Mr. Catania questions the Minister for Housing regarding prior warnings about Pindan Construction's financial stability before its collapse. The Minister acknowledges the concerns but defends the department's contract management and payment processes.
AnsweredQoN 165Legislative Assembly
QuestionView source ↗
PINDAN GROUP — GOVERNMENT CONTRACTS
165. Mr V.A. CATANIA to the Minister for Housing:
I would like to acknowledge the
Pindan subcontractors who are joining us in the public gallery: Craig Stoner
from Roofeze, who will potentially lose $70 000; Matthew Day from Dynamite
Concrete, another company set to lose $200 000; and Miss Louise Stewart,
immediate past chair of Subcontractors WA.
I refer to the collapse of Pindan Construction and existing
Department of Housing contracts with Pindan.
(1) Has the
minister, his department or his ministerial predecessor received any
correspondence from any person or entity raising concerns about Pindan, and
particularly about its ability to meet its payment terms, as specified in
contracts?
(2) If yes, what
actions were taken to address the issue?
165. Mr V.A. CATANIA to the Minister for Housing:
I would like to acknowledge the
Pindan subcontractors who are joining us in the public gallery: Craig Stoner
from Roofeze, who will potentially lose $70 000; Matthew Day from Dynamite
Concrete, another company set to lose $200 000; and Miss Louise Stewart,
immediate past chair of Subcontractors WA.
I refer to the collapse of Pindan Construction and existing
Department of Housing contracts with Pindan.
(1) Has the
minister, his department or his ministerial predecessor received any
correspondence from any person or entity raising concerns about Pindan, and
particularly about its ability to meet its payment terms, as specified in
contracts?
(2) If yes, what
actions were taken to address the issue?
AnswerView source ↗
(1)–(2) I
thank the member for his question. I appreciate his concern as the local member
for the region, but I think it is unreasonable for me or the agencies to trawl
through correspondence and communications. I
want to put this on the record: this contract was not a construction contract;
it was, instead, a maintenance contract with fortnightly payments made
for works completed. Under that contract, checks and balances were in place. That included—this is
standard in the industry—to provide to the Department of Communities statutory declarations each month, with any supporting evidence. If there were
any outstanding payments due, that needed to also be explained to the agency as
part of that contract.
As I said on the record last week,
Pindan provided a statutory declaration for March. However, it did not do so for April, because administration was
called. I am very cognisant of the plight of both the contractors and
the hundred staff who are still employed under the contract. I am advised that
70 per cent of the work was undertaken, and is still being undertaken, by
staff. I want to assure everyone here that, as the Premier has indicated, we are
taking a very sober and prudent approach to this matter. We want to secure the
best outcome we can in these difficult circumstances.
thank the member for his question. I appreciate his concern as the local member
for the region, but I think it is unreasonable for me or the agencies to trawl
through correspondence and communications. I
want to put this on the record: this contract was not a construction contract;
it was, instead, a maintenance contract with fortnightly payments made
for works completed. Under that contract, checks and balances were in place. That included—this is
standard in the industry—to provide to the Department of Communities statutory declarations each month, with any supporting evidence. If there were
any outstanding payments due, that needed to also be explained to the agency as
part of that contract.
As I said on the record last week,
Pindan provided a statutory declaration for March. However, it did not do so for April, because administration was
called. I am very cognisant of the plight of both the contractors and
the hundred staff who are still employed under the contract. I am advised that
70 per cent of the work was undertaken, and is still being undertaken, by
staff. I want to assure everyone here that, as the Premier has indicated, we are
taking a very sober and prudent approach to this matter. We want to secure the
best outcome we can in these difficult circumstances.
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