National construction firm PBS Building in administration as directors speak out about collapse

A national building company is in administration, and its directors have spoken out, after it shut down development sites nationwide.

A national building company is in administration, and its directors have spoken out after it locked up development sites nationwide.

Jonathon Colbran, Richard Stone and Mitchell Herrett from RSM Australia Partners have been appointed to five companies related to PBS Building, which had 80 projects under way and employed 180 staff.

Administrators’ early estimates put the number of creditors at 1000, saying they were owed more than $25m between them.

News PBS had abandoned its development sites, leaving projects across Australia in limbo, shocked the industry and home buyers on Monday.

Sites along the coast stretched into their second day of lockup, leaving developers, subcontractors and buyers in limbo.

PBS Building is part-way through Marquee Developments’ 19-level Shoreline at Old Burleigh Rd in Surfers Paradise, and sold-out Serenity Reserve townhouse project at Helensvale.

The Serenity Reserve townhouse project which was under construction by PBS Building.

A statement released by the directors described the action as a “incredibly difficult decision”. “This has been a gut-wrenching decision that we know will impact many lives and livelihoods,” the statement said.

“However, after months of intense efforts behind the scenes, in the end it was the only responsible course of action available.

“In relation to our current projects, we secured, not abandoned, these sites with the express purpose of not incurring any further expenses.

“We took this step to ensure that we could negotiate better outcomes with clients for the ultimate benefit of creditors.”

Adminisatrator Mr Colbran said the five PBS companies had 80 residential and commercial projects in various stages of construction.

“All work on these sites ceased immediately prior to the appointment of the Administrators and it is not clear at this stage whether works will recommence,” he said.

“If works do not recommence, the operations of the PBS construction companies will progressively be shut down and sites will be handed over to customers.”

Ian Carter, chairman and founder of PBS Building.

PBS Building managing director Adam Moore.

The PBS directors’ statement said the company had prided itself on getting the job done “no matter what the challenge”.

“Yet, despite this tenacity and more than 30 years’ industry experience, the unprecedented combination of record material costs, fixed price contracts, labour and material shortages, extreme rain events, floods, bush fires and wars has proved an insurmountable challenge,” they said.

“We are the latest, but we won’t be the last construction group to buckle under the weight of a broken industry and way of doing business that needs urgent reform.”

The company informed its staff of the decision on Monday, saying all employee entitlements had been paid.

“They were understandably very emotional meetings,” the statement said.

The PBS Building executive team.

It said senior managers had contacted PBS clients with projects under way.

“We have had some very tough conversations – some of our clients expressed disbelief and shock,” it said.

“We have been receiving humbling messages of support and understanding at all levels, particularly from our long-term contractors, suppliers, and clients.

“The PBS Board of Directors is working closely and collaboratively with the Administrators and will continue to work tirelessly to make this process as smooth as possible and to maximise value for our creditors.”

Originally published as National construction firm PBS Building in administration as directors speak out about collapse