WA Housing Group and Individual Developments WA collapse amid soaring building material costs
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Two other major construction firms collapse amid rising material costs, leaving would-be Australian homeowners in the lurch as the industry crisis deepens.
- LAST MINUTE: More problems for construction companies
Two other major construction companies, WA Housing Group and Individual Developments WA (IDWA), have collapsed amid rising costs of building materials and labor shortages.
WA Housing Group, which started in 2019 and reportedly owes around $1 million to creditors, with 13 unfinished projects, went into liquidation on December 7.
IDWA, which had agreements with the Department of Housing and Communities (DHC), has also gone under.
WA Housing Group, which started in 2019 and reportedly owes around $1 million to creditors, with 13 unfinished projects, went into liquidation on December 7. In the photo, an unfinished construction project
He attempted to renegotiate a contract with the DHC, but agreement on a new price could not be reached.
Mathieu Tribut of liquidator GTS Advisory, said western australia that both companies failed when construction costs rose on what were fixed-term contracts.
“The reason they (WA Housing Group) went out of business is because, in my opinion, they were operating while they were insolvent and they were making losses every month, so they had no choice but to close the door,” Tribut said. .
‘They took a bank loan, everyone lost, including themselves.’
More to come…