Companies in Australia’s construction industry have walked out of their workplaces over unpaid invoices and another company has crashed with unfinished projects in four states.
Last Thursday, the Queensland Supreme Court ordered construction company Allroads Pty Ltd into liquidation.
The company specialized in civil construction, with $200 million of major road and defense projects in Brisbane, Townsville and the Gold Coast still open at the time of its collapse.
An investigation by the administrators, liquidator David Stimpson of insolvency firm SV Partners, concluded that the company owed $24.5 million to 721 creditors.
The creditors include 145 employees who are owed $3.9 million in unpaid wages, benefits and benefits.
Civil engineering company Allroads Pty Ltd was ordered into liquidation. It had $200 million of major highways and defense projects in Brisbane, Townsville and the Gold Coast still open at the time of its collapse.
“There have been worrying signs that these guys were not in a good place for a long time, with multiple subcontractors and suppliers abandoning their sites due to unpaid invoices,” a source said. news.com.au.
They said many of the creditors were small businesses that would “feel the impact, if not go out of business,” of the losses.
At the time of its bankruptcy, the civil engineering company still had more than 12 multimillion-dollar projects open.
Pending work included a $92 million contract to build a metropolitan depot in Brisbane’s financial district, a $50 million project for an Australian Defense Force base in central Queensland and a $35 million job of dollars for the RAAF barracks in Townsville.
Meanwhile, three construction companies linked to a major national construction company also collapsed earlier this month.
Rork Projects (Holdings) Pty Ltd, Rork Projects (QLD) Pty Ltd and Rork Projects Pty Ltd entered administration on 1 March.
The construction company had 63 vacant jobs in the Australian Capital Territory, New South Wales, Victoria and Queensland.
Administrators Anthony Connelly, Jamie Harris and Mark Holland of insolvency firm McGrath Nicol discovered the company owed almost $30 million, according to a report sent to creditors last week and seen by news.com.au.
The company, which operated for 26 years and specialized in remodeling, had assets totaling an estimated $697,000.
Just over $15 million of its debts are owed to unsecured creditors, including subcontractors, legal authorities, public service providers, property owners and commercial suppliers.
Administrators have warned that the amount owed to unsecured creditors is likely to increase once the final assessment is completed.
The company is owed around $3.8 million, but administrators believe the amount will be disputed and offset by claims for damages and defects for incomplete work.
Meanwhile, three construction companies linked to a major national construction company, Rork Group, entered bankruptcy earlier this month. The construction company owes nearly $30 million in debt and has 63 current jobs in four states.
The collapse has affected Rork’s 80 employees, and the company owes its staff $2.25 million in benefits, including $143,000 in unpaid surpluses.
Rork director Brian O’Rourke cited a “tsunami of impossible economic conditions” as the reason for the company’s administration.
“It is with a heavy heart that I announce that after 26 years of trading, Rork Projects has been forced to enter voluntary administration,” he wrote on the company’s website.
‘This was the final step in a long journey to find a solution for our staff, clients and subcontractors, and we recognize the devastating impact this outcome has on them.
‘Builders are in crisis due to high interest rates, labor shortages and material supply limitations following the pandemic.
‘The construction market is facing one of the worst storms since the crisis of the mid-1970s. While devastating for us, it is also damaging for the Australian economy and community.
“Thank you to everyone we have worked with.”