Controversial builder Modco Residential allegedly owes more than $28,000 to a recruitment firm that has launched legal action to wind-up the company.
Controversial builder Modco Residential allegedly owes more than $28,000 to a recruitment firm that has launched legal action to wind-up the company.
Business News can reveal the troubled Perth-based builder allegedly owes recruitment and labour hire services company Torquejobs $28,112 from three unpaid invoices
The details were contained in Federal Court documents that were released to Business News this week and follows a slew of accusations made in the past six months against the Osborne Park-headquartered residential builder, founded by Perth couple Yusuf Khan and Cynthia Lu during the pandemic.
Torquejobs, which has an office in Kewdale and locations on the eastern seaboard, lodged an application to wind-up the builder on the grounds of insolvency and to have its costs reimbursed after Modco allegedly failed to comply with a statutory demand for payment earlier this year.
Modco allegedly owes $11,688 from an invoice dated in August, $13,127 from another in September and $3,315 from the latest invoice in January, according to the court documents.
The invoices were in relation to three permanent positions including a draftsperson, scheduler and construction manager all based in Western Australia, the court documents revealed.
Torquejobs chief financial officer Duncan Bremner wrote in an affidavit he believed there was no genuine dispute about the existence or amount of the debt.
The recruitment firm is being represented by Warren Jiear from HWL Ebsworth Lawyers in Brisbane and the application will be heard over a web conference from Queensland’s Federal Court on July 18.
The court action bid comes after the state’s building industry regulator warned customers, subcontractors and suppliers over Modco’s ability to pay its debts.
In May, Building and Energy WA said it had received information from several owners, subcontractors and suppliers leading to growing concerns about the builder’s capacity to pay its debts.
The industry watchdog had also received reports that in some cases, no work was taking place and that progress payments were being demanded in advance of being due.
At the time, Building and Energy said it had made several attempts to communicate with Modco’s director and nominated supervisor to gain an understanding of the company’s financial position but neither had been responsive.
