Allroads Pty Ltd: Tradies walk off the job after builder’s $200million collapse as second company crashes with $30million of debt

Australian construction industry tradies have walked off sites over unpaid bills, while another company in four states has gone bankrupt with incomplete projects.

Construction company Allroads Pty Ltd was ordered into liquidation by the Queensland Supreme Court last Thursday.

The company specialized in civil construction and had $200 million worth of major road and defense projects in Brisbane, Townsville and the Gold Coast still outstanding at the time of the collapse.

An investigation by the administrators – liquidator David Stimpson of insolvency firm SV Partners – found that the company owed $24.5 million to 721 creditors.

Creditors include 145 employees owed $3.9 million in unpaid wages, supervision and entitlements.

“There have been worrying signs that these guys have not been in the right place for quite some time, with multiple subcontractors and suppliers leaving sites due to unpaid bills,” a source said. news.com.au.

They said many of the creditors were small businesses that would “feel the pain, if not break” of the losses.

At the time of the collapse, the civil engineering company reportedly still had more than twelve million-dollar projects open.

The unfinished jobs include a $92 million contract to build a metro depot in Brisbane’s CBD, a $50 million project for an Australian defense base in central Queensland and a $35 million job for the RAAF barracks in Townsville.

Meanwhile, three construction companies linked to a major national construction company also went bankrupt earlier this month.

Rork Projects (Holdings) Pty Ltd, Rork Projects (QLD) Pty Ltd and Rork Projects Pty Ltd went into administration on March 1.

The construction company had 63 open vacancies in the Australian Capital Territory, New South Wales, Victoria and Queensland.

Administrators Anthony Connelly, Jamie Harris and Mark Holland of insolvency firm McGrath Nicol discovered the company owed almost $30 million, according to a report sent to creditors last week and seen by news.com.au.

The company, which had been in business for 26 years and specialized in renovation, had assets worth an estimated $697,000.

Just over $15 million of its debt is owed to unsecured creditors, including subcontractors. government agencies, utilities, landlords and commercial suppliers.

Trustees have warned that the amount owed to unsecured creditors is likely to rise once the final assessment is completed.

The company is owed around $3.8 million, but administrators believe the amount will be disputed and set off against damage and defect claims for unfinished work.

Meanwhile, earlier this month, three construction companies linked to major national construction firm Rork Group went bankrupt. The construction company has nearly $30 million in debt and currently employs 63 jobs in four states

The collapse has affected all 80 of Rork’s employees, with the company owing its staff $2.25 million in entitlements, including $143,000 in unpaid super costs.

Rork CEO Brian O’Rourke pointed to a “tsunami of impossible economic conditions” as the reason for the company’s administration.

“It is with a heavy heart that I announce that after 26 years in business, Rork Projects has been forced to enter voluntary administration,” he wrote on the company website.

‘This was the final step in a long journey to find a solution for our employees, customers and subcontractors, and we recognize the devastating impact this outcome has on them.

“Construction companies are in crisis due to high interest rates, labor shortages and restrictions in the supply of materials due to the pandemic.

‘The construction market is facing one of the worst storms since the crisis of the mid-1970s. While devastating for us, it is also damaging to the Australian economy and community.

“Thank you to everyone we worked with.”