A sharp increase in construction costs and continued supply chain shortages caused by the pandemic led to the Voluntary Administration of Privium, leaving behind over 2,100 home buyers in a state of flux.
Situation
Privium Pty Ltd was a major residential builder in Queensland, New South Wales and Victoria, with over 2,100 active contracts and a turnover of AU$219 million in its last full year of operation.
Rising construction costs, brought on by higher labour and material costs due to COVID-19-related supply shortages and drawn-out lead times, ultimately led to increased pressure on Priviums profit margins for builds.
After running out of cash in November 2021, Privium entered Adminstration owing secured and unsecured creditors almost A…
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