PHOTO: DOWNSIZING AU
Tradespeople in Australia’s construction industry have downed tools due to unpaid bills, while another firm has ceased operations, leaving projects unfinished across four states.
Allroads Pty Ltd, a civil construction company, was ordered into liquidation by the Queensland Supreme Court last Thursday. Despite having ongoing projects worth $200 million in Brisbane, Townsville, and the Gold Coast, the company’s collapse has left creditors in the lurch.
An investigation by liquidator David Stimpson of SV Partners revealed that Allroads Pty Ltd owed a staggering $24.5 million to 721 creditors, including 145 staff members who are owed $3.9 million in wages, superannuation, and entitlements.
Additionally, concerns had been brewing for some time, with subcontractors and suppliers leaving job sites due to unpaid bills. Many of the affected creditors are small businesses, facing substantial losses.
The collapse of Allroads Pty Ltd has left over 12 multimillion-dollar projects incomplete, including a $92 million metro depot in Brisbane’s CBD, a $50 million project for an Australian Defence Force base, and a $35 million job for RAAF barracks in Townsville.
In a separate incident, three building companies associated with Rork Group went into administration earlier in the month, owing almost $30 million in debts and impacting 63 current projects across four states.
Civil Engineering Company Allroads Pty Ltd was ordered into liquidation. It had with $200million in major road and defence projects in Brisbane , Townsville and the Gold Coast still open at the time of its collapse
The collapse has taken a toll on Rork’s 80 employees, who are owed $2.25 million in entitlements. Brian O’Rourke, Director of Rork, attributed the company’s administration to insurmountable economic challenges, citing high interest rates, labor shortages, and material supply constraints exacerbated by the pandemic.
nd offset against damages and defect claims on incomplete work.
Meanwhile, three building companies linked to a major national building firm Rork Group went into administration earlier this month. The construction company owes almost $30million in debts and has 63 current jobs across four states
Despite the challenges, O’Rourke expressed gratitude to those they’ve worked with over the years, acknowledging the impact on staff, clients, and subcontractors, while highlighting the broader implications for the construction sector and the Australian economy.