Yet another construction company has gone bankrupt as the industry is going through a financial crisis caused by skyrocketing construction costs.
The Lloyd Group, a civil engineering design and construction group, voluntarily went into administration on Friday with about 59 projects still uncompleted, including 30 in New South Wales and 29 in Victoria.
The firm has appointed Deloitte Turnaround & Restructuring partners Sam Marsden, Sal Algeri, Jason Tracy and Tim Norman as volunteer trustees of six companies that make up the Lloyd group.
Started as a family business in South East Melbourne in 1979, the company has since grown to employ approximately 200 people in offices in Geelong, Sydney and Brisbane.
The development came on the same day one of Australia’s largest construction companies, Porter Davis Homes, went bankrupt with more than 1,500 projects still to be completed.
Yet another construction company, Lloyd Group, was placed under voluntary administration on Friday with 59 unfinished projects in New South Wales and Victoria
The Lloyd Group has made a name for itself by taking on social projects, such as schools, sports facilities and government buildings.
It lists numerous schools and community centers among the completed projects, but many of the unfinished projects are unknown.
One of the company’s 30 unfinished jobs in NSW was the construction of the Willowdale Sports Pavilion near the growing community of Leppington, adjacent to the proposed Western Sydney Airport.
It was also commissioned by Blacktown City Council to build a sports facility at Schofields in Sydney’s north west.
“It’s devastating to the community, but also to us financially and probably to the council,” said Sam Crawford, the project’s architect. The age.
Administrators will urgently review the company’s finances for the numerous projects to determine the financial situation.
‘From the very beginning, our culture of integrity, teamwork, excellence and innovation has been the cornerstone of our business,’ reads Lloyd Group’s website.
Construction giant Porter Davis Homes also went into administration on Friday, leaving 1,500 homes unfinished in Melbourne and Brisbane
Australia’s construction industry has faced a wave of insolvencies due to rising input costs
Victoria-based Porter Davis, which has been in business for more than 20 years and earned $256 million in revenue in 2021, also filed for bankruptcy on Friday.
The company is the nation’s 13th-largest home builder, having built 1,734 homes in fiscal year 2020-2021.
The company left more than 1,500 homes under construction in Melbourne, another 200 in Queensland and another 779 projects due to start soon.
An owner of one of the unfinished houses, Sojuy Gosh, was moved to tears after learning that the company was going bankrupt.
“With all the time and energy we’ve invested, we didn’t expect this,” Mr Gosh told A Current Affair.
Father-of-two, Sojuy Gosh (pictured), was moved to tears after learning Porter Davis had been placed under administration while his home was left unfinished
The father-of-two was told he and his family would be able to move into the home in May last year after giving hundreds of thousands of dollars to Porter Davis.
Construction costs rose at a record pace in mid-2022 and were almost 5 percent more expensive than the previous quarter.
The rate softened in the next quarter, however, falling to just under 2 percent.