As noted in The Age, however, that was not to be. Reed Constructions, the company contracted by the Victorian Government to undertake the upgrade, famously collapsed in 2012 owing $89.2 million to unsecured creditors, including $85.6 million to subcontractors many of whom had been engaged (mostly in New South Wales) to work on major public-sector road, housing and education projects.
Reed is not the only case of a builder going belly up. All up, 1,481 companies within the construction sector entered some form of external administration over the 12 months to March this year according to data from the Australian Securities and Investments Commission. Of these, 1,112 were liquidated a situation which usually sees su…
Read the full article at: https://sourceable.net/what-subcontractors-and-suppliers-need-to-know-about-head-contractor-insolvencies/