Australian building giant Probuild has gone into voluntary administration after a problem-laden high-rise project drove the company into debt, meaning up to $5 billion in commercial and public sector projects are in jeopardy.
It was tools down on Wednesday night across the country, and 750 dismayed employees along with countless contractors have woken up today to the news the parent company Wilson Bayly Holmes-Ovcon Limited (WBHO) pulled the plug.
âWe are caught up in a set of circumstances not of our making,â a Probuild spokesperson says.
âWe are working closely with the administrator on a number of plans to protect our clients, subcontractors and employees.â
CreditorWatch CEO Patrick Coghlan told SmartCompany Probuild has become the latest victim of the pandemicâs âtriple threatâ.
âYouâve got big supply chain delays because raw materials arenât available, youâve got material price increases which is either part of the supply chain issue or the result of inflation (and thatâs where it can get really dangerous, is if a builder doesnât quote properly as it can substantially blow out their margin) and three, there are a lot of project delays due to labour shortages from COVID-19,â he says.
And when a…
