Luxury builder Art Struct fails owing $2m

A Brisbane building firm specialising in luxury home renovations and builds has collapsed owing almost $2m, joining the growing list of construction failures this year.

A Brisbane building firm specialising in luxury home renovations has collapsed owing almost $2m, joining the growing list of construction failures this year.

Jarvis Archer, restructuring partner at Revive Financial, has been appointed administrator of New Farm-based Art Struct, which specialised in renovations of inner-city Brisbane homes.

Archer says the builder had signed fixed-price contracts with customers but suffered significant losses due to cost blowouts on materials. The company had ceased trading in January, with all 14 ongoing projects terminated by customers. “The director attempted to complete some of the works under his own building licence,” Archer says.

Like many other building firms, Art Struct was caught out by a surge in labour and materials costs that have put many fixed-price contracts under water.

Tough business for building trade

Archer says the company had $844,000 of invoice and progress claims that it was unable to recover due to disputes from customers and issues with its building licence. He says the firm owes the Australian Taxation Office about $900,000, while $320,000 is owing to employees’ super funds and trade creditors are owed $613,000.

The company was originally established in 2006, and its website claims it “earned a solid reputation for providing innovative and quality building solutions for new homes, renovations and commercial projects”.

According to Queensland Building and Construction Commission records, Art Struct’s licence was cancelled at the start of the year at the request of the builder. The value of the residential work undertaken had fallen from a peak of $4m in 2017 to $1.4m last financial year.

Retail Therapy

IT has been a tough couple of years for shopping centres but the sector is bouncing back in style. The Property Council of Australia will name its top centres at a gala awards night on October 7 with more than 40 finalists vying for gongs including excellence in marketing, development, and innovation.

Property Council Queensland executive director Jen Williams (illustrated) says the finalists are a testament to the role that the retail sector plays across Queensland, acting as hubs of economic activity.

Sunshine Plaza. Picture: Patrick Woods.

“Queensland is home to some incredible retail properties and precincts which represent more than just bricks and mortar, they’re meeting points, economic multipliers and employers,” says Williams. “These awards highlight the huge contribution that these developments make to our communities and recognise the excellence of the developers and individuals.”

Some of the finalists include well-known retail giants such as Indooroopilly Shopping Centre, Logan Hyperdome, Pacific Fair and Sunshine Plaza but regional properties in Gympie, Cairns and Rockhampton also get a nod. Martia George, of Vicinity Centres, and Rachel Logan , of QIC, are up for emerging retail property professional of the year.

Northern Exposure

THE November instalment of the Noosa Mining Conference is really starting to take shape. Some 50 companies have already accepted presentation or exhibition spots, with some exciting new prospects including coal giant Coronado Global Resources, copper explorer Cobre Limited and Queensland critical minerals explorer Superior Resources.

The conference, from November 9-11 at Peppers Noosa Resort, will be sponsored by the ASX and Canaccord Genuity. Founded in 2011 by former mining engineer and stockbroker Phil Dickinson, the conference is now likened to the famous “Diggers and Dealers” in Kalgoorlie.

Phil Dickinson, organiser of the Noosa Mining Conference