A well-known construction company went bankrupt after almost two decades in business, joining a growing list of thousands of collapsed builders.
Stevens Construction, based on the New South Wales Central Coast, announced on Monday it had entered voluntary administration after facing “unprecedented disruption” during recent construction.
In its 18 years of operation, the company has carried out projects for companies such as Woolworths, Dan Murphy’s and the New South Wales Government.
It now leaves behind 10 unfinished projects as BRI Ferrie administrators Jonathon Keenen, Andrew Cummins and Peter Krejci assess the company’s future.
Meanwhile, the company’s 40 employees will not be laid off.
A major NSW builder, Stevens Construction (pictured, workplace) has been placed into voluntary administration after failing to overcome industry-wide problems following the pandemic.
In a statement released Monday, the company said problems plaguing the industry since the pandemic caused its collapse.
“The unprecedented disruptions have led to skyrocketing construction costs, reduced productivity, and critical shortages of materials and skilled labor,” the statement read.
“These factors together have placed immense pressure on Stevens Construction, making continued operations unsustainable.”
The statement added that they wish to “express our deep gratitude” to those affected by the insolvency.
“We are acutely aware of the distress this news will cause to everyone involved – our valued staff, suppliers, subcontractors, design consultants and directors,” it reads.
“Our priority now is to work closely with the appointed administrators to explore all possible avenues to find a viable path forward.”
Keenan said the appointed administrators will work with the company “to investigate what happened and try to identify options that may be available to the company’s customers, employees, subcontractors and suppliers.”
Stevens Construction said its “primary focus” was on restructuring the business, but did not rule out selling the business to “maximize profitability for creditors.”
The company’s collapse is just the latest casualty in a period of horror for the industry, which has been reeling amid skyrocketing construction costs and employee shortages.
The company leaves behind 10 unfinished projects having previously been contracted on projects for companies such as Dan Murphy’s (pictured, a Stevens Construction project)
Between July and March, 2,142 construction companies went into receivership, representing 27.7 per cent of the 7,742 companies that filed for insolvency, data from the Australian Securities and Investments Commission showed.
If that trend continues, Australia is on track to see 10,000 businesses fail for the first time since 2012-13.
Insolvencies in the first nine months of 2023-24 were 36.2 per cent higher than in the corresponding months of 2022-23.
Metricon CEO Brad Duggan said labor shortages are adding to problems in the construction sector, which has struggled with higher material costs for several years.
“A lot of structural changes are needed to achieve the goals and trying to get more breadth and capacity in the workforce is a critical component of that,” he said. news corporation.
‘These skills do not develop overnight. These people are professionals and it takes them a long time to get to a level that allows them to deliver quality housing,’ he stated.