Another construction company entered administration as the industry faced a financial crisis caused by rising construction costs.
The Lloyd Group, a civil design and construction group, went into voluntary administration on Friday with around 59 projects still unfinished, including 30 in New South Wales and 29 in Victoria.
The company has named Deloitte Turnaround & Restructuring Partners Sam Marsden, Sal Algeri, Jason Tracy and Tim Norman as voluntary administrators of six companies that make up the Lloyd Group.
The company began as a family owned business out of south east Melbourne in 1979, and has since expanded to employ around 200 people across its offices in Geelong, Sydney and Brisbane.
The development came on the same day that one of Australia’s largest builders, Porter Davis Homes, went into liquidation, with more than 1,500 projects yet to be completed.
However, another construction company, Lloyd Group, was put into voluntary administration on Friday with 59 unfinished projects across New South Wales and Victoria.
The Lloyd Group have built a name for themselves by taking on community projects such as schools, sports facilities and government buildings.
It lists several schools and community centers among the completed projects, but many unfinished projects are unknown.
One of the company’s unfinished 30 New South Wales jobs was to build the Willowdale Sports Pavilion near the growing community of Leppington adjacent to the proposed Western Sydney Airport.
It has also been commissioned by Blacktown City Council to build a sports facility at Schofields in northwest Sydney.
Sam Crawford, architect of the project, said: the age.
Administrators will quickly assess the company’s finances across its many projects to determine its financial condition.
“From the beginning, our culture of integrity, teamwork, excellence and innovation has been the cornerstone of our business,” says the Lloyd Group website.
The construction giant, Porter Davis Homes, also went into administration on Friday, leaving 1,500 homes unfinished across Melbourne and Brisbane.
The construction industry in Australia has experienced a series of bankruptcies due to rising input costs
Victoria-based Porter Davis, which has been in business for more than 20 years and generated $256 million in revenue through 2021, was also liquidated on Friday.
The company is the 13th largest homebuilder in the country and built 1,734 homes in the 2020-2021 fiscal year.
The company has more than 1,500 homes under construction in Melbourne, another 200 in Queensland and another 779 projects due to start soon.
Sujoy Ghosh, the owner of an unfinished house, was brought to tears after finding out that the company had gone into management.
“With all the time and effort we’ve invested, this wasn’t something we expected,” Ghosh told A Current Affair.
Father-of-two, Sujoy Ghosh (pictured), was brought to tears after discovering that Porter Davis had been placed into management while his house was left unfinished.
The father-of-two was told he and his family would be able to move into the home in May of last year after giving hundreds of thousands of dollars to Porter Davis.
Construction costs rose at a record high rate in mid-2022, costing nearly 5 percent more than in the previous quarter.
However, the rate eased in the next quarter, dropping to just under 2 percent.
Construction company collapse
companies based in Victoria, Porter Davis Homes And Lloyd Group He went to the department on Friday.
PBS Building He went into voluntary administration earlier in March.
New South Wales apartment developer EQ constructions It broke up in February, because of $50 million.
Perth Building Company Hamlin Homes He went bankrupt in February, reportedly owed $1.4 million to creditors.
The next, a Melbourne-based apartment builder Halbury homes Went to the Voluntary Administration – $12 million.
earlier in February, Delco construction group In Victoria because of $780,000.