Adelaide builder Qattro has been placed in liquidation with 200 homes left unfinished

Residents report months of inaction and materials “sitting out in the weather” turning “grey” before builder Qattro announced its collapse - leaving 200 homes in limbo.

The future of about 200 homes currently under construction is in limbo with major builder Qattro being placed in liquidation.

The company owes more than $4.5m to unsecured creditors, and collapsed following unsuccessful attempts to recapitalise the business in recent months, liquidators Chris Powell and Nick Gyss from Duncan Powell said in a statement.

Qattro has more than 200 construction projects with a total value of over $110m under construction or in a pre-construction stage, the liquidators said.

“Qattro has been constructing various stages at the Cedar Woods Fletcher Slip Development and Dock 1 Development for Kite Constructions together with several other smaller developments including projects in Underdale, Torrens Park and Lightsview,’’ Mr Powell said.

“Qattro Built has faced increasingly challenging operating conditions that have affected the entire industry and we have significant experience in supporting construction businesses in similar circumstances.

Qattro Managing Director Bradley Jansen at MardenConnect. Picture: Keryn Stevens

“We will work closely with the management team and the various developers and owners to mitigate ongoing losses and exposures for all stakeholders and facilitate the orderly transition and completion of the projects.’’

Sole director Bradley Jansen released a statement on Tuesday saying that despite his team’s best efforts, the company had been placed in liquidation.

Mr Jansen said it was a difficult decision, and they had fought hard in the face of large cost increases.

“I am devastated to make this decision after three exceedingly difficult years of efforts trying to recover the post-Covid financial sustainability of the company,’’ he said in a statement.

“I know the closure of the business will have a significant impact on its many long-term employees, clients, contractors and various local sporting clubs and charities that Qattro has strongly supported over the last 15 years … for this I apologise.

“I have made significant changes to the company in the post-Covid years, such as downsizing both operations and our offices, but I have exhausted all options.

“The reality is ongoing supply-chain and labour shortages mean that there is too much cash stuck on near-completed projects to meet the immediate obligations of the company.

“New projects secured are profitable, however the existing projects with underwater fixed price contracts are still weighing too heavily on the ability to get to the other side.

“The reality is that selling something under contract for $1.00 that costs $1.20 to produce can only go on for so long. Unfortunately, the industry has watched this unfold over the past three years and continues to, without knowing when it will subside.’’

Mr Jansen said he had done all he could personally to try and save the business.

“I have tried my best to protect the staff and suppliers. I can truthfully say I have put all my personal assets into the business to try to push through but attempts to absorb the $7.5m in cost increases over the last few years have wiped the balance sheet.

“I am proud that Qattro has operated as a trusted, well-respected, and professional business for over 15 years, and the difficult decision to enter liquidation has been made to minimise further forecasted financial losses and the subsequent impact to staff, suppliers, contractors, and clients.

“I am extremely thankful for the loyalty and dedication of management and staff, as well as suppliers and subcontractors for their continued support, which has enabled Qattro to deliver thousands of homes for South Australians.’’

A Fletcher’s Slip landowner is now relieved Metricon rather than Qattro were contracted to build his home when he signed with developer Cedar Woods two years ago.

The landowner, who didn’t want to be named, said he put down a $10,000 deposit with Metricon while he understood Qattro clients paid a $40,000 deposit.

He said he frequently visited the site and witnesed weeks of inactivity.

“We would just see a handful of tradespeople working at a time, then they would just disappear, sometimes for weeks,” he said.

“(Qattro) said there was a shortage of materials to begin with ... materials would get delivered and they would sit out in the weather for weeks, if not months.

“The timber has discoloured to this greyish colour because it’s been sitting out in the weather.

“This is a whole estate of hundreds of houses ... they’re trying to build it with half a dozen tradespeople.”

Consumer and Business Affairs Minister Andrea Michaels said while the government was not aware of any uninsured projects, she had asked the Commissioner for Consumer Affairs to dedicate a staff member to helping those affected.

“I encourage consumers to contact CBS on 131 882 for assistance,’’ Ms Michaels said.

“Any consumers impacted are encouraged to phone QBE on 1300 790 723 to obtain further information about their insurance and the process for making a claim.’’

Qattro was founded in 2008 and employs 25 people.

The liquidators can be contacted on 8223 6322.