NSW govt to axe major building deal: union

St Hilliers Construction has lost a contract to build NSW housing commission blocks, putting hundreds of jobs in jeopardy, a union says.

Administrators were appointed last week when associated company St Hilliers Ararat Pty Ltd went into liquidation after failing to complete the public-private expansion of Victoria’s Ararat Prison.

Brian Parker, the state secretary of the Construction Forestry Mining and Energy Union, said St Hilliers’ was set to lose a NSW government contract to build 13 housing commission lots despite being able to pay its bills.

He said executive chairman Tim Casey and a senior NSW bureaucracy had informed him of the news on Tuesday.

“The government has terminated their contract with them,” he told AAP.

“There’s no guarantee to pay subcontractors, we’re talking at least probably in excess of 500 different subcontractors.”

St Hilliers was given a contract earlier this year to build public housing.

Mr Parker said Brian Baker, the deputy director-general of NSW Public Works, had informed him of the government decision to renege on that deal.

“He rang me and told me what was taking place,” he said.

Comment was being sought from NSW Finance Minister Greg Pearce.

The Department of Finance said it would take over the St Hilliers contract and NSW Public Works would assume management of the public housing projects.

The department said its priority was to ensure work on the housing resumed and pledged to “seek to make maximum use of existing subcontractors, while maintaining value for money”.

“Discussions between the department and St Hilliers have been constructive, with the mutual objectives of having work completed expeditiously and minimising disruption during the transition,” it said in a statement.

“These discussions are continuing.

“The department is working towards having the works restart as fast as possible.”

Mr Parker said the state government had not indicated that subcontractors would be paid what they are owed, with some due hundreds of thousands of dollars.

“There’s certainly no guarantee under the statement the government have released to say contractors are going to be paid for the work they’ve already completed,” Mr Parker told reporters in Sydney on Tuesday.

“We’re going to see a number of subcontractors with no future, further companies going into liquidation, further workers out on the dole.”

Mr Parker said it was likely that certain projects would be held back for several months.

Owner of Adam Christofides Plumbing, Adam Christofides, said he stands to lose $100,000 for work his business has already done.

“We were in the hope that they would let St Hillier go on with the projects to keep our money flowing,” Mr Christofides said.

He said losing $100,000 would put a huge strain on paying his 14 employees.

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