A local business working on the Bendigo hospital project has received a financial reprieve.Related: Hospital contractor enters administration, leaving local business owed $32,000
A STRATHFIELDSAYE business owed more than $32,000 after a sub-contractor on the Bendigo hospital project went into administration has been spared the majority of the crippling bill.
Strathfieldsaye Engineering and Sheet Metal was owed the money after JML Facades was forced into administration by the Federal Court at the start of April. JML Facades blamedthe lack of a payment from head contractor Lendlease for their financial struggles.
The Strathfieldsaye company has received a reprieve however, telling the Bendigo AdvertiserLendlease had chosento order the remainder of its stock for $20,000.
Lendlease also placed a forward order of $10,000 with the company, with half already allocated.
Sarah Kairn, ofStrathfieldsaye Engineering and Sheet Metal, said it was a positive outcome from a stressful few weeksfor the business.
“It was a generous offer from Lendlease,” she said.
“We have managed to get two-thirds of what was outstanding, which is far more than what we were expecting.
“It’s good to see that they are trying to look after local people. It only happened a few weeks ago, but it feels like a lifetime. So much has happened in that time.”
The company was supplying material for cosmetic work, such as tap fittings and window sills, on the Bendigo hospital project under contractor JML Facades, a subsidiary of JML Group.
Two businesses were left owing money when JML Facades was ordered into administration by the Federal Court.
It was the second company to fall into financial ruin on the hospitalafter fit-out contractorAsset Interiors entered voluntary administration, allegedly failing to pay Chinese workers for two months.
A spokesperson for Leandlease said it would continue to work with sub-contractors and suppliers.
“We continue to work with suppliers to procure outstanding materials required to complete construction of the Bendigo Hospital,” the spokesperson said.
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