Two building firms hit the wall as ‘perfect storm’ continues

Two Queensland building-related firms have gone under owing millions of dollars in debt as the crisis engulfing the construction industry worsens.

A perfect storm has hit the building industry

The perfect storm afflicting Queensland’s troubled construction sector continues to hit home with two major building-related firms going under owing millions.

Gold Coast-based T.A.T Floor and Wall Tiling Qld that had worked on a project for the ill-fated construction giant Probuild has collapsed owing $1.4m to creditors while Burleigh-based Q Build Formwork has gone under owing about $1m.

Liquidators Jirsch Sutherland was late last week appointed to T.A.T Floor and Wall Tiling Qld, which specialised in medium to large scale residential and commercial tiling, waterproofing and refurbishment projects.

The firm, which is part of the TAT Group, had worked on a $1.6m project for Probuild’s Grand Central Shopping Centre in Toowoomba as well as the Spire and Ivy apartment high-rise projects in Brisbane for Hutchinson Builders.

According to Queensland Building and Construction Commission records, T.A.T held a category two licence, which meant it could carry out work valued up to $12m each year.

The firm is part of a group of companies that also included T.A.T Tiling Qld and T.A..T Construction Group. Established in Melbourne in 2007, TAT has offices on the Gold Coast, Melbourne and Newcastle.

T.A.T. Floor and Wall Tiling Qld directors Jim Mansfield and Tim Trollope did not return email or phone requests for comment.

Separately, Glenn O’Kearney, of GT Advisory & Consulting, has been appointed liquidator of Burleigh Head-based Q Build Formwork, which provided concrete construction services to builders across south east Queensland.

Mr O’Kearney said earlier indications show factors behind the company’s collapse included Covid-19 lockdowns, a builder not paying the company and cost increases.

“Investigations are at a very preliminary stage but initial indications are that there are total creditors of just over $1m at this stage,” said Mr O’Kearney.

The firms joins a growing list of contractors caught out by the collapse of larger construction companies over the past few months including Probuild, Condev and Privium Homes.

Builders under pressure

A glazing company that worked on Probuild’s troubled 443 Queen St project went under in March owing $3.25m and putting more than 130 people out of work.

Anthony Connelly, Jamie Harris and Mark Holland of McGrathNicol were appointed liquidators of Narangba-based Hitec Glazing on March 3 after the 14-year-old firm was hit by the collapse of Probuild in late February.

Hitech had provided windows to the Queen St project as well as working on a range of other major high-rise developments around the country.

Builders around the country have been hit by a litany of challenges including supply chain blockages, labour shortages and soaring prices for steel and concrete.

Stockwell managing director Mark Stockwell said the entire industry had been hit by a “perfect storm” with double digit increases in costs across the board.

The Tile Factory, one of Queensland’s major building suppliers, collapsed owing creditors $5.6m after Covid-related supply chain issues sent it to the wall.

The company, which had been wholesaling tiles since 1982, had garnered 15 industry awards over its four decades in the competitive sector.