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Highlights
- Gold coast-based builder, Condev Construction, is planning liquidation.
- Construction giant Condev joins Probuild in an already collapsing industry.
- Labour shortage, disrupted supply chain and low pricing is weighing heavy on the industry.
Joining news maker Probuild in business closure is, Gold Coast- based builder, Condev Construction. Condev has announced its collapse and an intention to appoint a liquidator. Condev is planning to go into liquidation after reportedly failing to secure a bid for AU$25 million from developers.
Condev Construction seeks liquidator to take over its affairs
Construction giant Condev operating in Queensland and NSW is suffering from the market and material costs eating up its bottom line. As a result, it is being forced to appoint a liquidator to take over its affairs.
The builder, on Monday, called a last-bid meeting with various developers from around Australia in a bid to raise cash for its ongoing operations. However, it could not get an answer to its AU$25 million ask at the meeting. Due to this, founders Steve and Tracy Marais are now planning to place the business in voluntary administration. Condev is still solvent and has an excellent reputation, it is planning to appoint a liquidator due to shady forecasts of market conditions and material costs weighing on the company's bottom line.
While the Marais family is absolutely devastated for its family of employees and business affiliates, it is unable to reach unanimous support needed to keep Condev’s business operational. The current situation is also acting as stressor on owners Steve and Tracy’s reputation in the industry and the community of tier one corporate citizens of Gold Coast. However, they have with a heavy heart finalised to appoint a liquidator to manage Condev's affairs.
Why construction materials supplier ADBRI is in news today?
Employees and contractors got to know this news via an email that the liquidation of Condev was now ‘a matter of course’. The mail, with deep grief, advised its employees to not come to work tomorrow. While the builders had never dreamt of a liquidation, they hadn’t even imagined a world affected by a coronavirus and price hikes as severe to put Condev out of business.
Condev currently has numerous projects under construction worth a billion dollar and employing thousands of workers. Its popular projects include the Cannes Waterfront, The Brookes Residences, Natura to name a few. It is the second major construction firm joining Probuild who collapsed due the rising burden of business costs.
Also read- Probuild in news again, as Robert Co shows interest in its Victorian asset
Why is the building industry struggling?
Image Source-© Simba3003 | Megapixl.com
Industry leaders believe that the building industry is going through a worrying situation since last 18 months. Supply chain challenges have escalated the cost of building materials and builders are unable to find enough workers in the market. Even the Master Builders Association has previously warned that more construction companies would wrap up their businesses amidst rising labour and material supply prices. Industry leaders are of the opinion that it might just be ‘the start of others falling over' with big shot Probuild already under media lens for such developments.
More job losses, builders and developers going bust, might also be in line. It is also believed that preventive measures like stronger regulations could have stopped a lot of these occurrences.
