Two Australian builders have collapsed leaving creditors more than $4.5million out of pocket – the latest in a wave of construction companies to go under.
PPS Qld and PPS Commercial, based in Burleigh Heads on the Gold Coast, have been placed into liquidation this week.
Salam Bettridge, 48, is the director of PPS QLD while his wife, 52-year-old Raquel Bettridge, is listed as the director of PPS Commercial, having taken over from him in 2022.
They have completed a number if mid-tier projects including childcare centres, schools and medical centres along with Elements of Byron resort and the visitor centre for Hinze Dam.
Liquidator Nick Keramos of McLeods Accounting told The Gold Coast Bulletin that PPS Qld had reported it’s debts at $1.8million and PPS Commercial at $2.7million.
But he added their debts would likely grow larger as subcontractors, suppliers and staff learning of the collapse make claims.
‘The main reason provided by the directors for both companies’ (collapse) is adverse trading conditions in the construction industry,’ Mr Keramos said.
A number of unfinished projects were on the books of both companies.
Building companies PPS QLD and PPS Commercial have collapsed owing more than $4.5million to subcontractors, suppliers and staff
John Davis of subcontractor Cadsteel said his company was owed about $700,000 by PPS Qld for a North Ipswich townhouse project.
‘We worked on our project and everything was fine until they started falling further and further behind on payments and said ”we can’t continue like this – we need to be paid”,’ he said.
His lawyers this month sent a statutory demand to be paid to PPS while it was under external administration.
Other creditors include Harvey Norman, owed $50,000, and the Queensland Rural and Industry Development Authority wed $217,000.
Billy Grimes from Sunshine Coast Concreters said he was owed about $7,000.
‘That might not sound like a huge amount, but we’re a small family business and it takes a long time to earn and save $7000 so it stings,’ he said.
Nearly 3,000 builders have gone bust in Australia in the past year, according to Australian Securities and Investments Commission (ASIC) data.
The figure is up about 28 per cent from the previous year.
According to ASIC data nearly 3,000 construction companies have gone under in Australia in the past 12 months
The economic downturn is largely to blame with the cost of materials and freight remaining high and labour shortages persisiting.
Builders which have signed onto fixed price contracts to build projects have found cashflow has dried up, pushing them over the edge.
‘Despite high demand for housing, people are not going ahead with new builds because the numbers just don’t stack up,’ Master Builders Australia CEO Denita Wawn told news.com.au.
‘Since 2019 we have seen the cost of home building increase by 40 per cent. The delivery of new homes and related infrastructure has been obstructed by ongoing and concurrent challenges.
‘Tradie shortages, planning and licensing delays, draconian industrial relations changes, material cost inflation, inefficient regulation, unfeasible lending practices and risk allocation are compounded to make projects unsustainable.’
