Delco Building Group collapses: Victorian construction company in liquidation after six years
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Award-winning construction firm collapses after just six years in business, with huge construction projects scrapped and tradies owed thousands
- Delco Building Group has entered into liquidation
- The company owes thousands to ATOs and contractors.
An award-winning Australian construction company collapsed after just six years in business with former employees owed thousands of dollars.
Victorian company Delco Building Group, which won a Master Builders Victoria Excellence in Housing Award, was placed into liquidation on Wednesday.
Hamish MacKinnon of Dye & Co has been appointed liquidator.
Delco Building Group was placed in liquidation on Wednesday (file image)
Mr MacKinnon said news.com.au that the construction company had five ‘quite significant’ projects underway when it collapsed
It said the company had an outstanding debt of $780,000 with $180,000 owed to the Australian Revenue Office, while the remaining $600,000 was owed to suppliers and contractors.
McKinnon said Delco Building Group employees resigned last year due to difficult business circumstances.
“The cost of materials and subcontractors means the builder can’t complete those projects because they will end up being massive losses and the debts would be through the roof if they continue to get supply,” he said.
He pointed to increases in the cost of materials and labor that make large projects difficult to complete.
The Delco Building Group website revealed a number of projects under construction in the Victorian suburbs of Mentone, Ormond, Mordialloc, Mount Eliza and Brighton.
The news follows the collapse last month of Hallbury Homes, which filed for bankruptcy on Jan. 4 owing about $7 million to creditors and leaving desperate customers outraged.
Like the Condons in the lurch. Families left with half-built dream homes after another construction company collapsed owing millions
Designated administrator Michael Caspaney of Menzies Advisory said Hallbury had been working on 42 sites with 52 projects when it collapsed with 20 employees affected.
Cost overruns in 2022 resulted in a succession of major construction companies going under: Probuild, FIRM, Condev Construction, Pivotal Homes, Waterford Homes, New Sensation Homes, Oracle and Privium.
Experts warn that the carnage will continue into 2023 due to runaway inflation, material and labor shortages that continue to plague the industry due to the Russia-Ukraine conflict, and persistent supply chain failures due to lockdowns. Covid.
More to come.