A stark warning has been issued that half of Australia’s building companies are on the brink of collapse, and it could see thousands of people’s homes impacted in the coming months, according to an industry insider.
Two major Australian construction companies including gold coast-based Condev and industry giant Probuild have already gone into liquidation this year, alongside smaller operators like Hotondo Homes Hobart. And it has sent shockwaves through the sector.
But it’s the “tip of the iceberg” according to Russ Stephens, co-founder of the Association of Professional Builders, who has estimated around 50 per cent of Australian building companies are currently trading insolvent – which means they can’t pay their bills.
It could leave customers forking out hundreds of thousands extra to get homes completed once a company collapses, he said.
“Just one building company collapse could literally impact thousands of consumers,” he told news.com.au.
“It’s easy for a large company to delay a decision to go into liquidation by six months or even a year … However, as we get towards the end of the year it’s probably safer to predict it could be thousands of consumers affected by collapsing building…
