QLD construction company collapse: Solido Builders appoints liquidators

Another Australian construction company has bitten the dust in what has been a horrific week for the construction industry, particularly in one Australian state.

Another Australian construction company has bitten the dust in what has been a horror week for the construction industry.

Over the weekend, Queensland construction company Solido Builders revealed it had unfortunately appointed liquidators.

The Cleveland-based small business was founded by husband and wife duo John and Libby Hattink in 2014. They said the business was too difficult to continue amid the current industry crisis, which included the rise in skyrocketing material and labor costs and long delays.

“Margins are already slim, especially for smaller builders,” Mr Hattink said, according to the Courier Mail.

“We made losses on a few projects and decided the best thing to do was to liquidate things. Our underlings got paid and we didn’t just pull the rug out from under people’s feet.

The Cleveland-based company specializing in custom luxury homes. It’s unclear how many builds were in the pipeline when they pulled the plug.

News.com.au has contacted Solido Builders for comment.

It comes amid a growing crisis in the construction sector, with half a dozen construction companies forced to close in recent months.

Queensland has been particularly hard hit by the struggling construction sector.

Just last week, Gold Coast-based construction company Pivotal Homes also announced it was insolvent.

All 16 of its staff were fired on the spot at a company board meeting and customers left behind as a family worried about what will happen to their 18 deposit $500.

Collapsed Pivotal Homes boss Michael Irwin blamed wildcat traders who he said were taking advantage of rising supply costs to raise prices, ultimately sending builders out of business.

Just two months ago, in March, the owners of construction giant Condev held back tears when they announced they had placed their business in the hands of liquidators.

Co-founders Steve and Tracy Marais were unable to secure a $25 million bailout from developers to deal with rising construction costs and Covid delays.

Ms Marais said there was enough money in the company’s coffers to pay the bills for the next three months, but the decision was made to go into liquidation earlier so as not to “further hurt the people “.

Notable projects in Condev’s announced $1 billion development pipeline include Cannes Beachfront at Surfers Paradise, Brookes Residences at Varsity Lakes, Natura and Brake Street, both in Burleigh, and Jindi Apartments at Palm Beach.

Then, in December, Queensland homebuilder Privium went bankrupt. But it emerged that in addition to general industry woes, Privium had also made an ill-advised $3 million cryptocurrency punt.

Liquidators FTI Consulting concluded that Privium was likely in business while insolvent since late August 2021.

At the time of the collapse, Privium chief executive and founder Rob Harder said he was “deeply sorry”.

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The construction sector has been hit hard by collapses this year.

An industry insider told news.com.au earlier this year that half of Australian construction companies are on the verge of collapse as they are insolvent, and it could see thousands of homes affected within months. coming.

Supply chain issues along with rising building material prices have led to skyrocketing costs and long delays, making it nearly impossible to break even, let alone turn a profit, in this market. .

Industry giant Probuild sent shockwaves across the country when it went into liquidation earlier this year.

Smaller operators like Hotondo Homes Hobart and Perth, Home Innovation Builders and New Sensation Homes, and Sydney-based Next have also collapsed, leaving homeowners out of pocket and with homes unfinished.

And earlier this month rumors began circulating that Australia’s biggest construction supplier, Metricon Homes, had entered into crisis talks.

Metricon strongly denied claims that they were on the brink of collapse.

Since then, Metricon Homes has secured a massive $30 million injection from its shareholders to shore up its balance sheet.

NSW Premier Dominic Perrottet also backed Metricon last week, revealing the NSW government would consider a bailout of the company if needed.

Metricon Homes employs approximately 2,500 people in Australia’s eastern states, with 4,000 homes currently under construction.

alex.turner-cohen@news.com.au

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