{"id":39520,"date":"2022-07-12T09:22:12","date_gmt":"2022-07-11T21:22:12","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=39520"},"modified":"2022-07-12T09:24:05","modified_gmt":"2022-07-11T21:24:05","slug":"inside-the-collapse-of-building-giants","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/inside-the-collapse-of-building-giants\/","title":{"rendered":"Inside the collapse of AUSTRALIAN building giants"},"content":{"rendered":"

PHOTO: Australian builders are collapsing. FILE<\/strong><\/p>\n

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At least 15 builders across Australia have collapsed within the past year and there are fears more may fall soon.<\/p>\n<\/div>\n

For many builders, the soaring price of materials and labour, compounded by Covid-19 delays, has eaten away at their profits.<\/p>\n

It means many have been unable to complete their jobs, including small and large companies.<\/p>\n

Desperate families across Australia are now out of pocket and struggling to make ends meet.<\/p>\n

Here is a breakdown of the main builders which have gone under in the past year.<\/p>\n

\"Waterford<\/a><\/div>\n
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BUILDING CRISIS: Another building company in liquidation<\/a><\/h2>\n<\/header>\n<\/div>\n

Probuild<\/b><\/p>\n

This Brisbane-based company was placed into voluntary administration in February, leaving more than 750 jobs hanging.<\/p>\n

It came after Probuild\u2019s parent, WBHO Australia Group, went into administration, leaving the construction giant and 17 related companies in limbo.<\/p>\n

At the time, it was revealed the firm had annual revenues of $1.4bn, with 18 commercial and public sector projects at various stages of development.<\/p>\n

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\"Probuild<\/div>\n

Probuild was placed into voluntary administration in February. Picture: NCA NewsWire \/ Andrew Henshaw<\/strong><\/em><\/p>\n<\/div>\n

Condev Construction<\/b><\/p>\n

The Gold Coast-based construction company went into liquidation after its owners Steve and Tracy Marais were unable to secure a reported $25m bailout from developers.<\/p>\n

Condev had been struggling with rising building costs, Covid-19 delays and 60 weather events which held up work on multiple sites over the past year.<\/p>\n

\"Metricon\"<\/a><\/div>\n
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Metricon launches massive sell-off with dozens of display homes for sale amid collapse fears<\/a><\/h2>\n<\/header>\n<\/div>\n

Notable projects in Condev\u2019s reported $1bn development pipeline include the Cannes Waterfront in Surfers Paradise, The Brookes Residences in Varsity Lakes and the Jindi Apartments in Palm Beach.<\/p>\n

Hotondo Homes Hobart<\/b><\/p>\n

About 40 customers were left in limbo after Hotondo Homes Hobart collapsed with liabilities of more than $1m in January.<\/p>\n

It has left families thousands of dollars out of pocket and without homes.<\/p>\n

\"Pivotal<\/a><\/div>\n
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Construction firm Pivotal Homes COLLAPSES | WATCH<\/a><\/h2>\n<\/header>\n<\/div>\n

Pivotal Homes<\/b><\/p>\n

When Gold Coast-based construction firm Pivotal Homes went under in May, more than 200 new home builds were thrown into chaos.<\/p>\n

\"Building<\/a><\/div>\n
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Falling like dominos: Australia\u2019s construction crisis deepens<\/a><\/h2>\n<\/header>\n<\/div>\n

Managing director Michael Irwin revealed at the time rising labour and construction costs were the main reason the company was forced into liquidation.<\/p>\n

Waterford Homes<\/b><\/p>\n

Last month, Waterford Homes entered into liquidation, with at least $600,000 in debt.<\/p>\n

Liquidator BTW Advisory revealed there were at least 60 creditors who could have outstanding debts owed by the builder, including 10 homeowners with builds at various stages of completion.<\/p>\n

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\"Condev<\/div>\n

Condev went into liquidation after its owners were unable to secure a reported $25m bailout from developers. Picture: Nigel Hallett<\/strong><\/em><\/p>\n<\/div>\n

Solido Builders<\/b><\/p>\n

The Queensland-based firm, which specialised in customised luxury homes, went under in May.<\/p>\n

Solido Builders was a small company founded in 2014.<\/p>\n

ABD Group<\/b><\/p>\n

High-rise builder ABD Group went into liquidation in November last year.<\/p>\n

Creditors appointed SV Partners\u2019 Michael Carrafa and Peter Gountzos as liquidators.<\/p>\n

New Sensation Homes<\/b><\/p>\n

Many people were left in the lurch in April when New Sensation Homes was placed in the hands of WA Insolvency Solutions.<\/p>\n

An anonymous former worker said at the time that the West Australian government\u2019s $20,000 Building Bonus grants, announced days after the Morrison government revealed its $25,000 HomeBuilder program in June 2020, forced the low-interest rate market to overheat.<\/p>\n

Home Innovation Builders<\/b><\/p>\n

Also in April, GTS Advisory was appointed liquidators for WA-based Home Innovation Builders.<\/p>\n

The collapses in WA prompted Tiarna Nouwland to start a petition online calling for an update to builders indemnity insurance to protect new building and home renovation customers.<\/p>\n

Privium<\/b><\/p>\n

Queensland-based construction firm Privium, which was founded in 1999 and predominantly built homes, was placed into liquidation in late December \u2013 about one month after voluntary administrators were appointed.<\/p>\n

It was later revealed the company took a $3m gamble on cryptocurrency before it went under and transferred more than $500,000 to a Christian charity.<\/p>\n

Liquidators FTI Consulting said Privium had likely been trading while insolvent since late August.<\/p>\n

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\"Some<\/div>\n

Some said the WA government\u2019s $20,000 Building Bonus grants, announced days after Morrison government revealed its $25,000 HomeBuilder program in June 2020, forced the low-interest rate market to overheat. But Premier Mark McGowan has said he has no regrets about the scheme. Picture: Matt Jelonek \/ Getty Images<\/strong><\/em><\/p>\n<\/div>\n

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Next<\/b><\/p>\n

This Sydney-based firm entered voluntary administration in April.<\/p>\n

It was reported at the time that the company, which was founded in 2007 and responsible for projects including Edge Ultimo and The Hensley in Potts Point, had debts of $15m.<\/p>\n

BA Murphy<\/b><\/p>\n

This Queensland-based builder folded in December last year.<\/p>\n

It was reported at the time that the company owed 550 creditors a total of more than $10.8m.<\/p>\n

Inside Out Construction<\/b><\/p>\n

In November, this Hobart-based company went into administration.<\/p>\n

It left clients with partially built houses and employees owed wages.<\/p>\n

Dyldam Developments<\/b><\/p>\n

Administrators were appointed to the Sydney-based company in January.<\/p>\n

At the time, chief executive Sam Fayad cited a breakdown in the company\u2019s relationship with its Chinese backer, as well as funding delays and family-related litigation.<\/p>\n

Pindan Group<\/b><\/p>\n

Many people were shocked when building giant Pindan collapsed in May.<\/p>\n

About 1400 creditors were owed a total of up to $80m, it was reported at the time.<\/p>\n

Finishing Pindan\u2019s projects would be a challenge, administrators said.<\/p>\n

READ MORE VIA NEWS.COM.AU<\/a><\/p>\n

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