PPS Qld and PPS Commercial: Two major Gold Coast construction companies suddenly collapse
Two Australian construction companies have gone bust, owing creditors more than $4.5 million. It is the latest in a string of construction companies to go bust.
PPS Qld and PPS Commercial, based in Burleigh Heads on the Gold Coast, were placed into liquidation this week.
Salam Bettridge, 48, is the managing director of PPS Qld, while his wife, 52-year-old Raquel Bettridge, is listed as a managing director of PPS Commercial, having taken over from him in 2022.
They have completed a number of medium-level projects including childcare centres, schools and medical centres, as well as the Elements of Byron resort and the Hinze Dam Visitor Centre.
Liquidator Nick Keramos of McLeods Accounting said The Gold Coast Bulletin that PPS Qld had reported a debt of $1.8 million and PPS Commercial a debt of $2.7 million.
But he added that their debts are likely to increase further as subcontractors, suppliers and staff who learned of the collapse file claims.
“The main reason given by the directors for the demise of both companies is the unfavorable trading conditions in the construction sector,” Keramos said.
Both companies had a number of unfinished projects in their portfolio.
Construction companies PPS QLD and PPS Commercial have gone bust, owing more than $4.5 million to subcontractors, suppliers and staff
John Davis of subcontractor Cadsteel said his company was owed about $700,000 by PPS Qld for a terraced housing project in North Ipswich.
“We were working on our project and everything was going fine until they started falling further and further behind on the payments and said, ‘We can’t continue with this, we need to get paid,’” he said.
His lawyers sent a reminder this month to pay the PPS, while it was under external administration.
Other creditors include Harvey Norman, which is owed $50,000, and the Queensland Rural and Industry Development Authority, which is owed $217,000.
Billy Grimes of Sunshine Coast Concreters said he was entitled to about $7,000.
“That may not seem like a big amount, but we’re a small family business and it takes a long time to earn and save $7,000. That’s painful,” he said.
Nearly 3,000 builders went bust in Australia last year, according to data from the Australian Securities and Investments Commission (ASIC).
That number is about 28 percent higher than last year.
Nearly 3,000 construction companies have gone bust in Australia in the past 12 months, according to ASIC data
The economic crisis is largely responsible for this. The costs of materials and freight remain high and there is still a shortage of labor.
Construction companies that have fixed-price contracts for construction projects are finding their cash flow drying up, causing them to overspend.
“Despite the high demand for housing, people are not building new because the numbers just aren’t right,” Denita Wawn, CEO of Master Builders Australia, told news.com.au.
‘Since 2019, we have seen the cost of housing construction rise by 40 percent, with the delivery of new homes and associated infrastructure being hampered by ongoing and concurrent challenges.
‘Skilled labor shortages, scheduling and permitting delays, draconian changes in labor relations, material cost inflation, inefficient regulations, unviable lending practices and risk sharing all combine to make projects unsustainable.’