Subbies fuming at firm's ethics

By Stephen O'Grady

The fallout from the closure of the Hervey Bay offices of luxury home builders David Reid Homes is being felt near and far.

A Brisbane-based tiling business claims it signed a contract with Donamic Enterprises, defunct holders of the David Reid Homes franchise, after Donamic had been instructed by David Reid head office not to sign any further contracts.

"They knew it was coming and they didn't do anything," said Jody Hafey of Studio Tiles which started a tiling job in Hervey Bay on Monday, October 22.

"Why did they get us to start a job on the 22nd if they knew it was all ending on the 26th?

"This builder is clearly not doing the right thing by the sub-contractors."

She says Studio Tiles got a call from Donamic Enterprises about four weeks ago because the business in a bind and needed a house tiled.

Studio Tiles, which had moved its business away from the Fraser Coast to concentrate on Brisbane, agreed to help out.

But exactly a week after starting the job, on the following Monday, a call from Donamic Enterprises instructed the tilers to down tools.

"Leave it. It's all over" was the message.

Ms Hafey is planning to be at a creditors meeting at Kondari Resort on Elizabeth Street this Friday morning but is not hopeful of recouping any money.

David Reid Homes director Russ Stephens has told the Chronicle that its agreement with Donamic Enterprises was terminated after Donamic's insolvent state was confirmed.

He says that Donamic Enterprises was instructed four months ago not to sign any more contracts.

David Reid Homes is now looking for a new agent to operate its Hervey Bay business.

Donamic Enterprises director Mick Picton says the company went into voluntary administration because of a lack of support from David Reid Homes.



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