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MARKET PULSE: More builders have collapsed under a perfect storm of pressures which are increasingly biting at the heels of companies in the construction industry across Australia.
Melbourne-based Blint Builders is the latest to collapse, with around $1 million in outstanding debt owed to 50 creditors, according to liquidators.
It went into voluntary liquidation after customers reported that no work was done in the construction of their homes since June.
The Melbourne head office was seized by the landlord, who is owed close to $14,000 in unpaid rent and rates.
Cliff Sanderson from insolvency firm Dissolve was appointed to deal with the liquidation.
Besse Constructions collapsed on August 9, owing $1.7 million, with 30 jobs lost and 130 creditors owed money.
The Brisbane-based business went into liquidation after a number of suppliers, tradies and labour hire companies left missing six-figure amounts. The highest figure owed is $373,000 to a scaffolding company.
Bill Karageozis from insolvency firm McLeod & Partners was appointed to handle the liquidation.
Meanwhile another company, Ajit Constructions, has reportedly “vanished”, allegedly closing its office and not responding to customers while the owner is overseas touring Europe, news.com.au reported.
The construction industry has felt a number of issues biting at its heels, as companies have fallen like dominoes citing supply chain disruptions, extreme weather, widespread labour shortages, and rising cost of materials and fuel.
Scott Hutchinson, chairman of Queensland construction company Hutchinson Builders hit the nail on the head recently when he told AFR: “I bet more builders go broke in Australia.”
He said builders “roll the dice with their fingers crossed every day of the week”.
A typical home build in Australia has soared by over $94,000 in 15 months – the fastest rise since 1982, the Housing Industry Association and the Australian Bureau of Statistics revealed.
Willoughby Homes, a NSW construction company also went into voluntary administration last week, with at least 30 homes unfinished.
In July, a court-ordered liquidation of Victorian construction firm Snowden Developments was staved off through a partial buy-out by another Victorian construction company, Mimosa Homes.
The liquidation was ordered over concerns the company couldn’t pay its debts – 52 staff members, 550 homes and more than 250 creditors were owed $18 million, and the Australian Taxation Office demanded $4 million in outstanding taxes.
Hamilton Property Group is under fire for allegedly taking deposits from the collapsed builder. Tens of thousands of dollars have apparently mysteriously disappeared, and liquidators claim they are unable to locate the funds.
Earlier this year, major construction companies including giant Probuild and Queensland-based Condev went into liquidation.
Australia’s biggest builder Metricon narrowly fought off liquidation with a $30 million cash injection from owners this year after the sudden death of its founder and chief executive Mario Biasin.
It is now undergoing internal restructuring and will cut 10 per cent of its staff – equating around 225 jobs lost.
Smaller operators including Pivotal Homes, Privium, AJ & JR Lynch Pty Ltd trading as Hotondo Homes Horsham, Tasmanian Constructions Pty Ltd trading as Hotondo Homes in Hobart, Home Innovation Builders, New Sensation Homes, and Sydney-based Next also collapsed.
Inside Out Construction, Solido Builders, Waterford Homes, Affordable Modular Homes, Norris Construction Group, and Statement Builders, also joined the list.
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