Industry a ‘shambles’: PBS Building abandons sites

Workers have ramped up their push for industry reform as a national construction firm ‘teeters on the edge of ruin’.

The future of troubled national construction company PBS Property Group is uncertain amid mounting losses, labour shortage and rising costs.

PBS, which has abandoned its building projects across the country, in its annual financial statement lodged with ASIC reported a $2.56m loss in 2022 compared to a profit of $3.26m the previous financial year.

PBS’s troubles come as the boss of one of the country’s largest private building companies declared the construction industry was in a “shambles” and more companies faced collapse.

The award-winning PBS, which employs 190 people, has now abandoned its development sites, leaving projects across Australia in limbo.

“Difficult trading conditions during the financial year contributed to a consolidated group loss,” company directors said in the report.

“The reduction in gross profit is significantly lower than the increase in materials, labour shortages and extreme weather conditions.”

Despite that the directors said they would continue to pursue construction and property development operations.

They had a positive outlook for “future profitability following the impact of Covid and industry pressure that affected the 2022 result.”

Picture of Shoreline building, 61 Old Burleigh Rd, Broadbeach. Picture by Richard Gosling

Subcontractors at some PBS sites began removing equipment on Friday, while the company’s website was removed from public viewing and its social media pages deleted.

PBS Building is based in Canberra and has offices in Sydney and Brisbane, however its past and present projects are scattered from Sydney to Hervey Bay in Queensland.

The group has delivered residential, commercial, industrial, retail, office, apartment, aged care and mixed-use developments along the east coast and directly employs 190 people.

Hutchinson Builders chairman Scott Hutchinson declined to comment on PBS but the industry itself was in a “shambles”. “

“Conditions are the worst I have experienced in my 37 years in the industry,” said Brisbane-based Mr Hutchinson. “There will be more collapses to come.”

“All the subbies have gone broke so we are now employing a lot of own tradies,” said Mr Hutchison. “That is a model that has not been used in the industry for 40 years.”

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

On Monday morning, both sites were locked up and deserted aside from security officers. Calls to the company’s offices were going unanswered.

The national construction union has ramped up its push for industry reform with PBS “teetering on the edge of ruin”.

Incoming CFMEU national secretary Zach Smith said the Labor Government needed to act immediately.

The Shoreline tower construction site on the Gold Coast. Picture Glenn Hampson

“The Federal Government must urgently make good on its election promise to implement nationally consistent security of payment laws,” Mr Smith said.

“Too many subcontractors and workers simply don’t get paid when companies ... collapse.

“It is unacceptable that people are not getting paid for their hard work. (It’s) one of the biggest problems in our industry.

“No more buck passing. No more talk. We need an effective national security of payments regime.

“What’s the point of a body like the Fair Work Ombudsman if it doesn’t recover money owed to workers and subcontractors when construction companies go under?”

“It’s always unions like the CFMEU left to pick up the pieces because Federal Government agencies aren’t responsible.

“Our union will do everything in its power to make sure workers and subbies get every cent owed to them but we need laws that guarantee this can happen.”

PBS Property logged $290.3 in revenue last financial year, but recorded a loss of $2.66m, down from profit of $3.27m the previous year.

The company is licensed for maximum revenue of $30m-$60m in Queensland, with QBCC records showing it had 177 jobs worth $52m in 2021-22, but just 23 jobs worth $9.3m so far this financial year.

Founded in 1989, PBS quickly expanded after working on the Sydney Olympic Village a decade later. The company’s website said PBS was “an award-winning and recognised industry leader” with “rock-solid corporate governance”.

Originally published as Industry a ‘shambles’: PBS Building abandons sites