Major Australian construction company Probuild is likely to enter administration, according to various reports.
Work stopped today across multiple Probuild sites, including at the Ritz Carlton site in Melbourne and other sites across Sydney and Brisbane.
So far, Melbourne-based Probuild and likely administrators Deloitte have declined to make comments to the media. A statement is expected to be released tomorrow morning.
Probuild has around 500 employees with thousands of subcontractors, and currently has $5 billion in its pipeline.
More to come…
The first in a “congo line”, warns apartment advocacy
While the construction industry is booming, increased labour and material costs have devastated the industry.
Most notably, last year saw both Pindan and Jaxon Constructions both entered administration. Many further down the supply chain have also gone under. However, none of these companies have been as a large as Probuild.
Sam Reece from Australian Apartment Advocacy, Australia’s largest apartment and unit owner advocacy group, said given financial difficulties faced by major builders, she would not be surprised if more major builders fall into the hands of administrators.
She added all apartment and unit owners have the right to be concerned, especially for those purchasing off the plan or those with structural guarantees.
“As usual, it may be apartment owners who have to foot the bill and we need to know where off the plan buyers are going to be left when all of this pans out,” she said.
“There is a congo line of builders out there who are in strife and PROBUILD’s problems may also spark the end of the line for many others in financial difficulty.
“It’s time for the relevant State Governments to provide greater protection for apartment buyers and owners under these circumstances.”
