{"id":39269,"date":"2022-06-26T09:34:44","date_gmt":"2022-06-25T21:34:44","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=39269"},"modified":"2022-06-26T09:37:47","modified_gmt":"2022-06-25T21:37:47","slug":"building-crisis-another-building-company-in-liquidation","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/building-crisis-another-building-company-in-liquidation\/","title":{"rendered":"BUILDING CRISIS: Another building company in liquidation"},"content":{"rendered":"

PHOTO: Waterford Homes<\/strong><\/p>\n

The construction industry woes continue with a Victorian builder revealing it has gone into liquidation with at least $600,000 in debt.<\/p>\n

\n

A Victorian builder based in the regional city of Geelong has gone into liquidation, with a number of homeowners, tradies and subcontractors impacted.<\/p>\n<\/div>\n

The builder, Waterford Homes, had a number of homes under construction, according to the liquidator appointed Ben te Wierik of BTW Advisory.<\/p>\n

\"Construction<\/a><\/div>\n
\n
\n

Construction sector on \u2018brink of collapse\u2019 | WATCH<\/a><\/h2>\n<\/header>\n<\/div>\n

It comes as Australia\u2019s building industry is in crisis, with about a dozen companies going into liquidation so far this year amid rising costs for construction materials, the ongoing supply chain crisis and fixed contracts, putting many out of business.<\/p>\n

Mr te Wierik said so far he had found 60 creditors who could have outstanding debts owed by the builder.<\/p>\n

This included 10 homeowners with current builds at various stages of completion, he said.<\/p>\n

\u201cThere are around 60 creditors in total including the ATO, it could be higher than that, but there\u2019s obviously big and small creditors. Some of those were obviously homeowners, who will be making claims under the builders warranty insurance,\u201d he said.<\/p>\n

\u201cAt the moment, in excess of $600,000 in claims have been found from trades and ATO debt but that\u2019s likely to increase as further claims are made.\u201d<\/p>\n

\n
\"The<\/div>\n

The builder owes at least $600,000 in outstanding debts according to the liquidator. Picture: iStock<\/strong><\/em><\/p>\n<\/div>\n

He said it was \u201cno secret\u201d that both large and small builders were facing \u201cchallenges\u201d at the moment and he suspected Waterford Homes faced similar conditions.<\/p>\n

\u201cBoth commercial and residential developers have plenty of work on but fixed price contracts, increased input costs and supply chain pressure and even material shortages and throw in the fact it\u2019s hard to get a trade, this is all leading to delays which then have a flow-on effect on cash flow,\u201d he said.<\/p>\n

\u201cThis makes it very difficult for any business but particularly ones that are in the building industry with profit margins being squeezed.<\/p>\n

\u201cIt\u2019s a pretty stressful time for homeowners and subbies who are owed money.\u201d<\/p>\n

Mr te Wierik said he would be investigating why the company failed and its assets, as well as whether any transactions could be clawed back as part of the liquidation.<\/p>\n

\n
\"A<\/div>\n

A home under construction. Picture: iStock<\/strong><\/em><\/p>\n<\/div>\n

The construction industry has been plagued by a spate of collapses this year.<\/p>\n

Two major Australian construction companies including\u00a0Gold Coast-based Condev\u00a0and\u00a0industry giant Probuild\u00a0have already gone into liquidation this year.<\/p>\n

Smaller operators like\u00a0Hotondo Homes Hobart\u00a0and Perth firms\u00a0Home Innovation Builders\u00a0and New Sensation Homes, as well as Sydney-based firm Next have also collapsed, leaving homeowners out of pocket and with unfinished houses.<\/p>\n

At the end of last month, two firms from Queensland collapsed just days apart,\u00a0Pivotal Homes\u00a0and\u00a0Solido Builders.<\/p>\n

\"Solido<\/a><\/div>\n
\n
\n

Queensland company Solido Builders joins long list of construction firms biting the dust | WATCH<\/a><\/h2>\n<\/header>\n<\/div>\n

An industry insider told news.com.au earlier this year that half of Australia\u2019s building companies are\u00a0on the brink of collapse\u00a0as they trade insolvent, and it could see thousands of people\u2019s homes impacted in the coming months.<\/p>\n

\n
\"Condev<\/div>\n

Condev building sites on the Gold Coast. Picture: Nigel Hallett<\/strong><\/em><\/p>\n<\/div>\n

One includes a Victorian construction company that might be about to collapse after it\u00a0racked up millions in debt\u00a0and building works have stalled for months.<\/p>\n

Snowdon Developments Pty Ltd has 15 creditors chasing it for debts totalling $2.5 million who are demanding the Supreme Court of Victoria impose a winding up order to force the company to go into liquidation \u201con the grounds of insolvency\u201d.<\/p>\n

There are between 10,000 to 12,000 residential building companies in Australia undertaking new homes or large renovation projects, a figure estimated by APB.<\/p>\n

A building insider, who works for one of the largest construction companies in NSW, has previously warned the situation in the industry is\u00a0only \u201cgoing to get worse\u201d\u00a0after a string of collapses in the sector, as the price of building homes blows out between $40,000 and $100,000.<\/p>\n

\n
\"Sub-contractors<\/div>\n

Sub-contractors and tradesmen pack up their equipment and walk off the 443 Queens Street construction site in Brisbane after Probuild went under. Picture: NCA NewsWire \/ Dan Peled<\/strong><\/em><\/p>\n<\/div>\n

READ MORE VIA NEWS.COM.AU<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

PHOTO: Waterford Homes The construction industry woes continue with aRead More →<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":39272,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[461747081],"tags":[478098730,478098512,478104599,478121942,478121944,478104361,478121938,478101949,478121935,478120755,478119722,478098535,478121943,478121517,478098513,478098579,478098510,478098514,478098511,478098509,478121941,478121939,478121937,478121940,478121936],"class_list":["entry","author-data123nz","post-39269","post","type-post","status-publish","format-standard","has-post-thumbnail","category-australian-property-real-estate-news","tag-auctions","tag-australia","tag-building-company","tag-building-crisis","tag-condev-building-sites","tag-construction-industry","tag-construction-materials","tag-geelong","tag-geelong-builder","tag-home-innovation-builders","tag-hotondo-homes-hobart","tag-house-prices","tag-new-sensation-homes","tag-pivotal-homes","tag-property","tag-property-market","tag-property-news","tag-propertynoise","tag-real-estate","tag-real-estate-news","tag-residential-building-companies","tag-snowdon-developments-pty-ltd","tag-victorian-builder","tag-victorian-construction-company","tag-waterford-homes"],"yoast_head":"\nBUILDING CRISIS: Another building company in liquidation - 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