Award-winning building company collapses after just six years in business – with huge building projects scrapped and tradies owed thousands
- Delco Building Group has gone into liquidation
- The company owes thousands to ATO and contractors
An Australian award-winning building company has collapsed after just six years in business with ex-employees owed thousands of dollars.
Victorian company Delco Building Group – which won a Master Builders Victoria Excellence in Housing Award – was on Wednesday placed into liquidation.
Hamish MacKinnon from Dye & Co has been appointed as liquidator.
Delco Building Group was on Wednesday placed into liquidation (stock image)
Mr MacKinnon told news.com.au that the construction company had five ‘quite significant’ projects on the go when it collapsed
He said the company had $780,000 in outstanding debt with $180,000 owed to the Australian Taxation Office, while the remaining $600,000 was owed to suppliers and contractors.
Mr McKinnon said Delco Building Group’s employees resigned last year due to the difficult trading circumstances.
‘The cost of materials and subcontractors means the builder can’t complete those projects because they will end up being massive losses and the debts would be through the roof if he continues to get supply,’ he said.
He pointed to increases in the cost of materials and labour making large projects difficult to complete.
Delco Building Group’s website revealed a number of projects under construction in the Victorian suburbs of Mentone, Ormond, Mordialloc, Mount Eliza and Brighton.
The news follows the collapse last month of Hallbury Homes, which filed for bankruptcy on January 4 owing about $7million to creditors and leaving despairing customers outraged.
amilies left with half-built dream homes after yet another building company collapses owing millions
The appointed administrator Michael Caspaney of Menzies Advisory said Hallbury had been working on 42 sites with 52 projects when it collapsed with 20 staff affected.
Cost overruns in 2022 resulted in a string of major construction firms going under, including Probuild, Condev Construction, Pivotal Homes and Waterford Homes
Experts have warned the pressures will continue into 2023 due to untamed inflation, shortages of material and labour owing to the Russia-Ukraine conflict, and lingering supply chain breakdowns due to Covid lockdowns.
More to come.
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