BRI Ferrier says insolvent Stevens Construction owes ‘several million dollars’ to creditors

Central Coast-based Stevens Construction owes several million dollars to subcontractors and material suppliers, as administrators reveal next steps.

Stevens Construction is thought to owe millions of dollars to subcontractors.

Major NSW builder Stevens Construction owes several million dollars to subcontractors and material suppliers after entering into voluntary administration last week.

The insolvency of the Tier 2 commercial construction business of 20 years has already seen work on 10 construction projects across Sydney and the Central Coast suspended.

BRI Ferrier principals Jonathon Keenan, Andrew Cummins and Peter Krejci have been appointed as joint administrators.

The first creditor’s reports shows the restructuring and insolvency group is exploring multiple options for the business, which include a restructure as well as an orderly winding-down and potential sale or assignment of contracts.

BRI Ferrier is yet to determine the full extent of debt Stevens Construction has racked up and has requested all 40 staff employed by the insolvent operator assemble all available creditor claim information, particularly where it relates to contracts.

“The total exposure is not yet known, however, it is understood that there is several million dollars owed to subcontractors and material suppliers,” the first creditor’s report says.

“Due to the limited information received to date and the early stages of the voluntary administration process, we are not in a position to provide comments on the likelihood or quantum of a return to creditors.”

The firm has undertaken projects across NSW throughout its 20 year history.

“Any return will be closely measured against the potential recoveries that may be available in a liquidation, so creditors can make an informed decision.”

Among the projects impacted are a service station under construction in the Wagga Wagga suburb of Boorooma, which was only eight weeks away from completion. It is also engaged in a new seniors living apartment building at Tarragal Glen Village in Erina on the Central Coast, a luxury retirees apartment complex in Greenwich on Sydney’s lower north shore and a medical centre in Blacktown.

Stevens Construction is also engaged in contracts in Soldiers Point, Mt White, Forster and Newcastle.

“We intend to work with the clients to explore options for the projects to be completed, which may include outcomes whereby the existing subcontractors and suppliers could come to commercial terms to continue the remaining works on the projects directly with the client, or their replacement builders,” the creditor’s report reads.

The administrators have noted the company employs around 40 permanent staff members who continue to remain employed. It understands employee wages were paid up prior to the voluntary administration.

Stevens Construction also deposited $750,000 into BRI Ferrier’s trust account immediately prior to the appointment commencing, and it said these funds would be deposited into a new bank account being set up.

Stevens Construction has blamed adverse market conditions and contractual obligations which began with the onset of the Covid-19 pandemic, resulting in losses on certain significant construction contracts and ultimately led to cash flow and solvency issues.

In the past the company completed a $27m contract on the Crows Nest Shopping Centre in Sydney.

Recent ASIC data shows construction-related businesses continue to make up the bulk of all businesses going insolvent, with 2398 going under in the 10 months to April 30, or a 37 per cent increase from the previous period.

Stevens Construction reported to the corporate regulator revenue fell 15 per cent to $54.2m in the 2023 financial year and accrued loss of $473,000, attributed to a change in how revenue from contracts was calculated.

It has undertaken projects in retail, industrial, hospitality, tertiary, aged care, seniors living and high-rise apartments.

The group was founded by Steven Mailey, a veteran of the industry who has 36 years of experience.

Its website says the company is “synonymous with meticulous safety, proficient selection of materials, and excellent construction and quality control processes” and strives to complete projects on time and retain all existing clients.

The group counts plenty of blue chip companies as clients including Woolworths, Coles, McDonald’s, Dan Murphy’s, BP and the NSW Government.

Work done by the company includes a $27m contract for Crows Nest Shopping Centre, Dan Murphy’s Gladesville and Woolworths Gloucester.

The second creditor’s report is due to be made available later this month.

Originally published as BRI Ferrier says insolvent Stevens Construction owes ‘several million dollars’ to creditors