A well-known construction company has gone bankrupt after almost twenty years, adding to the growing list of thousands of bankrupt construction companies.
Stevens Construction, based on New South Wales’ central coast, announced on Monday it had gone into voluntary administration after experiencing “unprecedented disruption” during recent construction work.
In its 18 years in business, the company has completed projects for companies including Woolworths, Dan Murphy’s and the NSW Government.
It now leaves behind ten unfinished projects as BRI Ferrie administrators Jonathon Keenen, Andrew Cummins and Peter Krejci assess the company’s future.
However, the company’s forty employees will not be dismissed in the meantime.
A major NSW builder, Stevens Construction (pictured, workplace), has been placed into voluntary administration after failing to resolve industry-wide issues post-pandemic
In a statement released Monday, the company said problems have been plaguing the sector since the pandemic led to its collapse.
“Unprecedented disruptions have led to skyrocketing construction costs, reduced productivity and critical shortages of materials and skilled labor,” the statement read.
“These factors have collectively placed enormous pressure on Stevens Construction, making continued operations unsustainable.”
The statement added that they wanted to “express our deep gratitude” to those affected by the bankruptcy.
“We are acutely aware of the distress this news will cause to everyone involved: our valued staff, suppliers, subcontractors, design consultants and clients,” it said.
‘Our priority now is to work closely with the appointed directors to explore all possible avenues for a viable path forward.’
Mr Keenan said appointed directors will work with the company “to investigate what happened and identify options that may be available to the company’s customers, employees, subcontractors and suppliers”.
Stevens Construction said its “primary focus” was restructuring the business, but did not write off the sale of the business to “maximize returns to creditors.”
The company’s collapse is just the latest casualty in a period of horror for the sector, which has been left reeling amid skyrocketing construction costs and workforce shortages.
The company leaves behind ten unfinished projects after previously being hired for projects for companies such as Dan Murphy’s (pictured, a Stevens Construction project)
Between July and March, 2,142 construction companies went bankrupt, representing 27.7 per cent of the 7,742 companies that failed, Australian Securities and Investments Commission data shows.
Should this trend continue, Australia is on track to see 10,000 businesses go bankrupt for the first time since 2012-13.
The number of bankruptcies in the first nine months of 2023-2024 was 36.2 percent higher than in the corresponding months of 2022-2023.
Metricon CEO Brad Duggan said labor shortages are adding to problems in the construction industry, which has struggled with higher material costs for years.
“There’s a lot of structural change that needs to happen to achieve the goals, and trying to get more breadth and capacity in the workforce is a critical part of that,” he said. News Corp.
‘You don’t develop these skills overnight. These people are professionals and it takes a long time for them to reach the level where they can deliver a high-quality home,” he said.