Building company MR8 Construction in liquidation

Fitzroy in Ponsonby. Photo/MR8 Construction

Another Auckland construction business has gone into liquidation, sparking a dispute over work in Ponsonby, but an ex-director of the builder says no money is owed.

Companies Office records show BHSSR, previously called MR8 Construction, went into voluntary liquidation today, in the hands of Waterstone Insolvency.

"Established with 25 years of industry experience, MR8 Construction is a true representation of an innovative and energetic company – clearly reflected in the success of its growth," its web site says.

"MR8 Construction specialises in the construction of multi-unit developments, high-density residential, light commercial, fitouts and industrial construction."

One creditor said $50,000 was outstanding for work undertaken last year and he knew of at least two other creditors who had provided goods and services on a project on Ponsonby's Fitzroy St.

Mark Ensom, MR8 Construction's contact on its firm's web site, said he was a former director of the company which did not owe any money.

The creditor in fact owed MR8 Construction about $30,000 Ensom said, because its work had been defective and took builders many weeks to rectify.

"They totally mucked up. There's been litigation," Ensom said.

The creditor said work was carried out last October but payment had not been received.

"We served a statutory demand on them and were ready to go to court this morning to enforce that only to find it had changed its name and the company had been placed in liquidation. I know of at least tow other creditors who are going to get burnt too," the man said.

MR8 Construction's web site shows projects at Farro Orakei and residential work in Mt Eden, Ponsonby and Flat Bush as well as the Fitzroy project in Ponsonby.

Michael Turner of Waterstone said today the firm had only been appointed and had been told by Ensom there were no creditors.

"My understanding is that it has not been trading for some time," Turner said. However, accounts were yet to be received and examined.

Just yesterday, it was announced that the Government was partnering with some of New Zealand's largest construction companies to tackle issues after company collapses and poor-quality builds.

Prime Minister Jacinda Ardern, Fletcher Construction chief executive Peter Reidy and other industry chiefs revealed the plan to tackle the problems that have led to high-profile building company collapses, poor-quality builds and skills shortages.

The plan would, according to Ardern, improve the construction sector's culture and reputation, increase its workforce and deliver more houses.

"The wellbeing of New Zealanders is intrinsically linked to safe, durable and affordable homes, buildings and infrastructure," Ardern said at yesterday's launch.