The following is what happens to subcontractors that work for MCJV (mcconnell dowell ap1lng origin enegy)
Very interesting read..
I have prepared this note to ensure you are aware of the reasons why we have been unable to pay you on this occasion and we have appointed an administrator to our company.
Longmont commenced work in 1984
Since this time we have completed a variety of works for the Mc Connell Dowel company, the last being installation of buildings in 2010. Until this time we always found them to be honest, ethical and a good client.
Longmont have always paid our bills as and when they fell due. We have had our share of bad debts, and suffered near disastrous Government regulatory decisions, and survived.
In 2011, we were invited to offer for the MCJV Miles Camp project. It would be the 7th accommodation project we have been involved with in the past 10 years and the second largest.
We were induced to offer a minimum price for a bare basic but complying camp, with any extras to be included by way of variation.
When building the camp, MCJV deviously withheld an ever increasing amount from our claims, for reasons such as "insufficient substantiation" (even when the actual work was physically complete.) At the end of May our claim remained unpaid for a number of concocted reasons, even when sums were agreed to be paid in minuted meetings with MCJV commercial personnel. These sums are withheld in addition to the xxxxxxxxx cash bank guarantee Longmont supplied and MCJV hold. ( they continually remind me of this when seeking free supply of works that are not part of the contracted items.)
Up to and including the end of June, we received correspondence from MCJV indicating sums in the millions of dollars were agreed as owing, and we were told, after the MCJV representative spoke with their accountant they would confirm what they would pay. The value of claims at this time exceeded xxx million dollars.
At this same time MCJV site personnel demanded we continue working to complete the project as per the contract, while we remained unpaid, contrary to the contract.
Absent of payment we left site July 2nd, and asked our contractors to leave site until we were paid. The day the progress payment was due, our main contractor put a lien on longmont and on MCJV payments due and future due from their client Origin Energy. Sadly they did not leave site.
The MCJV site Manager, telephoned late one night, and alternatively begged and demanded we complete the works and provide free of charge, items not included in the contract "or it will be like the last job where "we did not pay the camp builder xx million"
The fact we were not paid for May works meant that we could not pay our main contractor / builder and others at the end of June, so we were effectively prevented from issuing a further xx million plus in completed construction invoices, around xx million in variations and delay costs associated with camp relocation and commencement delays, plus other consequential costs.
MCJV have now circumvented our contract and approached our contractors direct to have the works completed. At the same time they have made legal threats to our engineers.
On Friday, the MCJV project Manager sent me an e mail requesting I release a "Certificate of Occupancy" for the completed works / buildings on site, and the same day, sent a formal letter of rejection of all claims for works, for various of contrived reasons such as the works were not done, even though physically complete. Both of these a contradiction of the other. Both requirements cannot be correct, the work is either done and we are entitled to payment and can supply a Certificate of Occupancy or it is not done and we are not entitled to payment and we cannot issue a Certificate of Occupancy.
An example of the issues raised, MCJV asked us to build on a new site and blamed longmont for the consequential delay to the construction program of relocation to that site.
The position now is now Longmont Engineering is in voluntary administration with around xxxx million claimed, to be claimed or otherwise owed to us by MCJV, and us owing around xxxx million plus the cost of supply and delivery of the last 30 modules. With the MCJV denial of all claims Longmont is now technically insolvent and based on personal guarantees, I am bankrupt, so the least I can do is provide this brief out line of the facts of the matter.
If you too are enticed into undertaking works for these people, you are now aware of the history. I can demonstrate with the highest creditable witnesses, the people I have dealt with are, in my opinion liars. In my opinion the people I have been working with have been deliberately deceptive with the practice tantamount to fraud.
I can only apologise most sincerely for involving you with these people. I do know this has been expensive for you, but it has wiped me out. I do expect our Administrator to get in touch in the next short period.