The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FULL PROGRAM RELEASED FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FULL PROGRAM RELEASED FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
VIEW FULL AGENDADETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
InfrastructureStaff WriterWed 23 Aug 17

Construction Firms in Queensland Most at Risk of Insolvency

72360626_m

Over 30 Queensland-based construction companies have collapsed in 2017, and nearly 450 more are at “high to severe” risk of failure in the next 12 months, according to insolvency group SV Partners.

Insolvency group SV Partners has released its findings in August's Commercial Risk Outlook Report. The report analyses industries and regions within Australia where incorporated operating businesses are predicted to face financial distress within the next 12 months.

The report found that 3.4% of construction businesses in Queensland (444) face severe to high risk of financial failure. This is an increase of 51 in construction businesses since March 2017.

The report notes that 2017 has seen a number of construction companies enter into insolvency including Bluestone Constructions, The Cullen Group, Batir Pty Ltd and Trac Construction.

There have been two major collapses in the last week with Queensland One Homes going into liquidation with debts of more than $3 million and Commonwealth Games Village contractor Ware Building.

Brisbane-based Rimfire Constructions has told subcontractors and suppliers it would be seeking a court-approved scheme of arrangement for debts to creditors of about $4 million. The company had its business licence cancelled by Queensland Building and Construction Commission (QBCC) in July.

National-listed builder Watpac reported an annual loss of $31.4 million after tax this week, including almost $30 million in equipment write-downs in its civil and mining business, with a corresponding 9.35% per cent revenue drop. It described market conditions as “challenging”.

The Queensland Government’s Department of Infrastructure, Local Government and Planning has allocated approximately $2.2 billion in the state infrastructure fund for 2017 – 2018.

Managing director of Condev Construction, Steve Marais told the Gold Coast Bulletin that this year's collapses are the “the tip of the iceberg [and] next year is going to be a bloodbath”.

Marais told the Bulletin that he expected half a dozen mid-tier builders would collapse in 2018.

The Queensland government is currently reviewing new laws that require builders and contractors to deposit funds in project bank accounts to pay subcontractors on time.

[Related reading: What will the construction downturn actually look like?]

Image copyright: catalin205 / 123RF Stock Photo

InfrastructureAustraliaConstructionFinanceConstructionProject
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
Exclusive

Fortis Reveals Plans for Coveted Bowen Terrace Site

Taryn Paris
4 Min
Exclusive

Accor Deputy Delivers Verdict on Brisbane Games Hotel Shortfall

Phil Bartsch
6 Min
Qld Budget 2025-26 Brisbane City
Exclusive

Billions Promised, Now Deliver: Industry’s Qld Budget Verdict

Vanessa Croll
6 Min
Medium Density housing in NSW
Exclusive

NSW Budget ‘Groundbreaking’ $1bn Guarantee to Unlock Housing

Leon Della Bosca
7 Min
View All >
Genesis Street Frontage 3D Concrete Printed Duplex with Nick Holden
Technology

Australia’s First 3D-Printed Duplex Halves Build Times

Leon Della Bosca
Industrial

Cadence Nabs Logistics Portfolio for $170.5m

Taryn Paris
Sponsored

Rare Coastal Development Opportunity in Heart of Mooloolaba

Partner Content
An exceptional opportunity has arisen to acquire one of Mooloolaba’s most premium development landholdings...
LATEST
Genesis Street Frontage 3D Concrete Printed Duplex with Nick Holden
Technology

Australia’s First 3D-Printed Duplex Halves Build Times

Leon Della Bosca
3 Min
Industrial

Cadence Nabs Logistics Portfolio for $170.5m

Taryn Paris
3 Min
Development

Rare Coastal Development Opportunity in Heart of Mooloolaba

Partner Content
2 Min
Sydney developer Platino Properties is planning a near 350-unit seniors development on the Northern Beaches as it continues to expand its over 55’s portfolio. The concept application extends the Skyline Place seniors precinct and is for 1 and 3 Skyline Place, Frenchs Forest.
Retirement & Aged Care

Platino Plans Northern Beaches Seniors Expansion

Renee McKeown
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/construction-insolvency-report-sv-partners