Australia’s construction industry is reeling after one of the nation’s largest home builders and a prominent civil construction group collapsed on the same day, sparking warnings that more groups will go to the wall as costs increases bite.
last year after it put together a rescue package with the support of shareholders, following the sudden death of its founder.
“It’s the contagion impact that people should be worried about following today’s appointment of liquidators to Porter Davis. There’s a number of other participants in the volume home building sector that are in a similar position and might be in trouble in the coming months,” he said. Both the Housing Industry Association and Master Builders Australia moved to reassure consumers, with the MBA describing the rate of collapses as being in line with the rate over the past 10 years and the HIA chief economist Tim Reardon saying the industry was at the tail end of a tough economic cycle.
“We understand the pressure on builders due to labour and supply chain issues and continue to consult with the industry.”Credit:The VMIA said the Porter Davis’ liquidator was in urgent talks to work out whether there was any potential for another builder to take over current contracts and ongoing builds.
Staff entitlements will be covered by the federal government guarantee that covers workers in a business in liquidation. Around 60 workers will be kept on while Grant Thornton seeks buyers for tranches of Porter Davis’ builds. “We’re already in discussions with a number of parties who might have an interest in stepping in and taking over some of the contracts,” he said.
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