Wagga building suppliers and subcontractors have blamed the NSW government's Land and Housing Corporation for likely costing them tens of thousands of dollars in unpaid work and materials.
The collapse of Sydney-based builder Matrix Group Co has left 13 Wagga companies and sole traders with almost $180,000 in unpaid invoices from the unfinished social housing unit block on Spring Street.
Two of the Wagga businesses now listed as unsecured creditors for the building company's liquidation have said that Matrix Group Co should never have been given the social housing contract.
Wagga Glass & Aluminium managing director Kevin Roben said the company would at best get back between three and five cents on the dollar from an unpaid bill of about $40,000 for windows and doors for the units.
"You are of a belief that the government vets the building contractor's financials to make sure they are viable to take on these types of projects, and this company absolutely black-and-white was not," he said.
"The government department really is largely at fault here for not completing their due diligence prior to handing out this contract."
Mr Roben said a similar incident happened to his business 20 years ago when he was supplying a company contracted to work on an upgrade to the Royal Australian Air Force base at Wagga.
"Two builders went bankrupt out there ... [the government] gave us a purchase order for the balance and to complete the job. We were not left out of pocket because they said they had not assessed the builders properly," Mr Roben said.
"That hasn't happened with Land and Housing Corporation and I believe it should."
The NSW Land and Housing Corporation has previously said it had terminated the contract with the construction company responsible for the delivery of the Spring Street project.
"NSW Land and Housing Corporation is currently progressing procurement of a replacement building contractor and it is anticipated this project will be completed in the first half of 2022," a corporation spokesperson said.
"As this remains a police investigation, no further comment can be made."
T R Bert managing director Terace Bert said he was still owed $35,000 for subcontracted welding work at Spring Street and had taken the job as he thought the government-backed project was secure.
"Land and Housing Corporation said they couldn't do anything as they had already paid Matrix," Mr Bert said.
"It's definitely not good. Things would be a lot easier if people paid."
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