Emotional scenes as $1b construction giant collapses

Owners of Condev Construction which folded this week have struggled to hold back tears as they fronted media.

The owners of defunct construction giant Condev have fought back tears as they fronted media on Wednesday, just moments after placing the company into liquidation.

Co-founders Steve and Tracy Marais were unable to secure a reported $25 million bailout from developers to deal with rising building costs and Covid delays.

Ms Marais described the scene as like “a funeral” as the pair spoke from the company’s Gold-Coast headquarters.

“The ink isn’t dry yet but we are formally in liquidation,”she said, holding back tears.

“We advised our staff there was no need to come to work today but there’s so many here. It’s like being at a funeral.”

Ms Marais described the scene as like “a funeral”.

The couple spoke to media moments after placing the company into liquidation.

The pair also revealed plans for subcontractors to be paid what they are owed by developers when construction resumes.

According to Ms Marais it was a mistake for the group of partner developers not to provide funding to keep Condev afloat.

“We believe that if people stand together that the impossible is possible … we still believe that they (developers) don’t understand what they’re doing (in not supporting the bailout),” she said.

“We really do believe that they don’t understand the market enough.”

Notable projects in Condev’s reported $1 billion development pipeline include the Cannes Waterfront in Surfers Paradise, The Brookes Residences in Varsity Lakes, Natura and Brake Street both in Burleigh, and the Jindi Apartments in Palm Beach.

A lawyer for the couple said on Tuesday the decision to appoint a liquidator had been made “based on forward projections dictated by increasingly challenging market conditions including the exponential rise in material costs.”

Ms Marais said there was enough money in company coffers to pay accounts for the next three months, but the decision was made to go into liquidation earlier so as not to “hurt people more”.

Experts have warned the construction industry is particularly vulnerable to liquidations due to thin profits margins and duration of projects that were highly susceptible to price fluctuations over time.

Last month another construction giant, Probuild, was placed into administration citing similar issues with ballooning materials costs.

Experts have warned the construction industry is particularly vulnerable to liquidations due to thin profits margins and duration of projects that were highly susceptible to price fluctuations over time.

Ms Marais said other companies in the industry would soon face the same fate as Condev.

“I don’t think potentially, I think for sure,” she said.

“I won’t mention names – that would be cruel because we didn’t like hearing these things (rumours of strife) about ourselves.”

A tearful Mr Marais expressed his hope others would fare better in the current difficult industry environment.

“I’ve been in the industry for 42 years and loved every moment except the last 15 months,” he said.

“We move on and hope everything works out for everybody else.”