Sydney-based company Matrix Group Co was announced in February as the contractor to build the block of four one-bedroom social housing units at 16 Spring Street.

Last month, multiple builders and subcontractors have complained to the NSW Land and Housing Corporation (LAHC) that their invoices for work on the site were past due.

LAHC has referred to the matter to NSW Fair Trading, Public Works Advisory and NSW Police.

Matrix Group Co last week filed paperwork to voluntarily place the company into administration and liquidation.

Wagga solicitor Kevin Foley, who is representing a plasterer who claims to be owed a substantial amount of money by Matrix, said his client, taxpayers and the Wagga community had been left in an "outrageous situation".

"There's been grandstanding about how they are going to do all these great things for people in the country areas and what have we got? Subcontractors unpaid and four units sitting there uncompleted with the community getting nothing out of it at all," he said.

Mr Foley said he expected to know more about Matrix's financial position next week.

"It doesn't look too good at this stage, all we can do is wait for the report from the liquidator.They might be trying to pay out ten cents on the dollar, you just don't know," he said.

A Department of Planning, Industry and Environment spokesperson said the NSW government will terminate the contract for the Spring Street block, which will allow another company to complete the works.

"The decision comes following multiple claims that sub-contractors hired by the company allegedly did not receive payment.

"The termination of the contract gives LAHC the ability to further progress this project. As this remains a police investigation, no further comment can be made at this time."

On Thursday, there was no activity at the building site but there had been a new security camera installed.

Matrix Group Co's branding was still visible on the security fence, which described the company as "your trusted project partner".

Australian Securities and Investments Commission records show that Troy Loh, aged 35 of Dundas Valley in Sydney, is the sole director and shareholder of Matrix Group Co.

Mr Loh was also described as Matrix's managing director in previous NSW government announcements about the Spring Street project.

As the sole shareholder and shareholder meeting chairman, Mr Loh approved appointing the Westburn Advisory firm's Shumit Banerjee as external administrator and liquidator on October 29.

Mr Banerjee told The Daily Advertiser that he was gathering information about Matrix's finances and identify what amounts could be recovered and this next step in the process could take two to six weeks.

"We been responding to creditors' queries to understand their claims, working out what claims the company for recovery of debts owed it," he said.

"What I have identified this far is the company was subject of a number of legal disputes at the date of my appointment to recover money, which we are looking into now."

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