The building company Waterford Homes in Geelong goes out of business.
A builder in Victoria, Australia, says it has gone out of business because it owes at least $600,000 and has gone into liquidation.
A builder in the city of Geelong, which is in the state of Victoria, has gone out of business. This has affected a number of homeowners, tradespeople, and subcontractors.
The liquidator, Ben te Wierik of BTW Advisory, said that the builder, Waterford Homes, had a number of homes in the process of being built.
It comes at a time when Australia’s building industry is in trouble. So far this year, about a dozen companies have gone out of business because of rising costs for building materials, problems with the supply chain, and fixed contracts.
After being hired on Tuesday, Mr. te Wierik said he was still trying to figure out how many homeowners would be affected. So far, he has found 60 creditors who may be owed money by the builder.
“The ATO is one of around 60 creditors, but the number could be higher. There are both big and small creditors. “It’s clear that some of them were homeowners, and they will file claims with the builders warranty insurance,” he said.
“Right now, more than $600,000 in claims from trades and ATO debt have been found, but that number is likely to go up as more claims are made.” He said that it was “no secret” that both big and small builders were having “challenges” right now, and he thought that Waterford Homes was in the same situation.
“Both commercial and residential developers have a lot of work, but fixed price contracts, rising input costs, pressure on the supply chain, and material shortages, plus the fact that it’s hard to get a trade, are all causing delays, which then affect cash flow,” he said.
“This makes it hard for any business to make money, but it’s especially hard for businesses in the building industry.
“It’s a tough time for people who are owed money, like homeowners and subcontractors.”
Mr. te Wierik said he would look into why the company went bankrupt and what its assets were. He also said he would see if any transactions could be reversed as part of the liquidation.
This year, there have been a lot of collapses in the building business.
This year, two of Australia’s biggest construction companies, Condev on the Gold Coast and Probuild, have already gone out of business.
Smaller companies like Hotondo Homes Hobart and Perth’s Home Innovation Builders and New Sensation Homes, as well as Sydney’s Next, have also gone out of business, leaving homeowners without money and with houses that aren’t finished.
Pivotal Homes and Solido Builders, both from Queensland, went out of business at the end of last month, just a few days apart.
An insider in the building industry told news.com.au earlier this year that half of Australia’s building companies are about to fail because they are trading while insolvent. This could affect the homes of thousands of people in the coming months.
One of them is a construction company in Victoria, Australia, that may be about to go bankrupt because it has millions of dollars in debt and building work has stopped for months.
Snowdon Developments Pty Ltd has 15 creditors who are after it for $2.5 million in debts. These creditors want the Supreme Court of Victoria to issue a “winding up order” to force the company to go bankrupt “on the grounds of insolvency.”
APB estimates that there are between 10,000 and 12,000 residential building companies in Australia. These companies build new homes or do major renovations.
A building expert who works for one of the biggest construction companies in NSW has said in the past that the situation in the industry is only “going to get worse” as the price of building homes goes up by between $40,000 and $100,000.
Scott Mason, who is in charge of commercial and property services at Equifax, said that the problems in the construction industry have led to a hidden crisis.
“Rising costs, broken supply chains, and occasional lockdowns have caused a boom that doesn’t make money. Many construction companies have committed to projects that can’t be done because building materials have gone up in price so much,” he said.
“Big company failures like Probuild and Condev have been in the news recently, but the effects of these events on the small businesses that make up most of Australia’s construction companies don’t often make the news.
“Equifax data shows that directors in building construction and construction services are 30% more likely than the average consumer to have mortgage arrears. Owners in building construction are 80% more likely to have mortgage arrears, and those in construction services are 100% more likely.”
He said that the shocking statistics show how bankruptcy has a wide range of effects.
“The effects on the whole ecosystem of businesses and the people who run them are often not seen,” he said.
According to the reporting agency CreditorWatch, a strong economy and steady growth depend on a strong construction industry. The sector employs almost 9% of Australian workers and makes up 7.5% of Australia’s GDP.