Affordable modular homes, statement builders: NSW construction companies are collapsing

Two NSW builders collapsed within days of each other, owing hundreds of thousands of dollars to big names including Bunnings Warehouse.

Two NSW-based construction companies have become the latest victims of the crumbling construction industry.

News.com.au may reveal that one company is in liquidation while the other has gone into voluntary administration.

Affordable Modular Homes Pty Ltd, a local Central Coast business specializing in tiny homes, has closed for good, owing tens of thousands to several creditors, including Bunnings Warehouse.

Last Monday, June 22, the manufacturer went into compulsory liquidation after a “lack of funds” vote according to the liquidator.

Another NSW builder, Statement Builders Pty Ltd, headquartered in Sydney’s CBD, has also folded.

It comes as Australia’s construction industry is in crisis, with many businesses collapsing so far this year due to rising construction material costs and ongoing complicated supply chain issues. by locked-in price contracts, putting them out of business.

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Helm Advisory’s Philip Hosking was named Affordable Modular Homes’ liquidator on Wednesday and said the company so far owed $121,000 to three creditors.

“However, this may change once [more] creditors file proof of debts,” he told news.com.au.

The construction company specializes in granny flats, modular homes and tiny homes.

Last month, two lawsuits were filed against her by creditors, including Bunnings Warehouse, which owed $20,000 and the workers’ compensation insurer, which owed $45,703.

The largest debt appears to be $75,000 to the Australian Taxation Office, although this figure is yet to be confirmed.

“The manager informed us that the business failed due to supply issues and poor profitability,” Mr Hosking added.

“We have been advised that no salaries or entitlements are due to staff except for the manager to whom unpaid salaries are due. At this point, the director is unlikely to receive anything.

Only three people work there, but a former employee spoke to news.com.au and said he owed tens of thousands of dollars.

“It was a diabolical mess this business,” the former staffer said.

“I wish I had never had the job, I quickly discovered that it was a bit of a mess.”

The other NSW builder, Statement Builders Pty Ltd, owes $200,000 but to only one creditor – the Australian Taxation Office.

Statement Builders will hold its second meeting on its voluntary administration next month, on July 6.

DBA Advisory’s Atle Crowe-Maxwell was named a director and said the company’s collapse was about a wider issue in the industry.

“It’s going to be a bloodbath, between the margins and the ATO wanting their money, it’s really going to push a lot of people over the edge,” he told news.com.au.

Australia’s construction sector has struggled in recent months.

Both Privium and BA Murphy folded in December 2021.

Then two major Australian construction firms, Gold Coast-based Condev and industry giant Probuild, were already put into liquidation earlier this year.

And this grim list has continued to grow as a number of other top companies also collapsed including Hotondo Homes Hobart, Inside Out Construction, Dyldam Developments, Home Innovation Builders, ABG Group, New Sensation Homes , Next, Pindan and ABD Group.

Late last month, two Queensland businesses collapsed within days of each other, Pivotal Homes and Solido Builders.

Last week, news.com.au reported on Melbourne builder Snowdon Developments Pty Ltd, which is also believed to be on the verge of collapse, with sources revealing that employees have not received their pensions since October, which represents more than half of the staff. resignations, as well as creditors who owed millions and construction work stalled for more than a year.

And on Friday, Victorian building company Waterford Homes appointed liquidators.

Earlier on Wednesday this week, news.com.au reported on a company that contracted for the construction sector, Fire Services Australia (FSA), which collapsed past $10.6million and affecting 123 jobs.

An industry insider told news.com.au earlier this year that half of Australia’s construction companies are on the brink of collapse as they are insolvent.

There are between 10,000 and 12,000 home building companies in Australia undertaking new homes or major renovation projects, a figure estimated by the Association of Professional Builders.

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