PBS Building companies, directors linked to $42m collapse of Ply (ACT) a decade ago

An award-winning national construction group, which went into shock administration this week, was tied to a $42m collapse exactly a decade ago, company records reveal.

• Cursed apartments abandoned again
• Fallout: 80 projects unfinished

An award-winning national construction group, which went into shock administration this week, was tied to a $42m collapse exactly a decade ago, company records reveal.

PBS Building shut down its development sites on Monday, and entered administration the following day, throwing the plans of developers, subcontractors and home buyers into disarray.

Administrators estimate the group’s five collapsed companies have 1000 creditors owed more than $25m between them, while 180 staff are out of a job.

The PBS website, before it was removed from public view, touted “a history of success”, in line with its motto “Here for Life”.

However, the group’s 34-year history hasn’t all been successful.

A worker arrives at the Shoreline tower construction site at 61 Old Burleigh Rd to find it locked up on Monday. Picture: Glenn Hampson

Company records show on March 4, 2013, a company named Ply (ACT) locked up its sites and went into administration, leaving debts of $42m to subcontractors and suppliers.

At the time, Ply was builder for the residential component of Canberra’s $550m Nishi complex, a landmark mixed-use project commenced by PBS Building.

Until seven months before the administration, Ply (ACT) had been named PBS Building (ACT) and had been directed by PBS founder Ian Carter.

It had also shared the same parent company as the PBS companies currently in administration.

At the time Ply went under, it was directed by David Murphy, 50, a long-time former director of at least 14 PBS companies – including all five currently in administration.

Nishi building at Lake Burley Griffin, Canberra.

Ian Carter, chairman and founder of PBS Building.

Mr Murphy ceased all of the PBS directorships, apart from PBS Building (ACT), before he was appointed director of Ply.

During the 2013 administration, the Federal Court heard Ply’s average yearly revenue was between $120m and $160m and that its average project was worth $30m.

The company had about 400 subcontractors and directly employed 32 people at the time.

When PBS Building (ACT) changed its name to Ply, another PBS company took on the PBS Building (ACT) name and that newer company was among five placed into administration this week.

All five are ultimately owned by PBS Property Group, which is not in administration.

Through his company Earlbeck, Mr Murphy is among the numerous shareholders of PBS Property Group.

PBS Building had 80 projects under way nationwide when it collapsed this week, including Marquee’s 19-level Shoreline apartment tower at Surfers Paradise and the sold-out Serenity Reserve townhouse project at Helensvale.

The Shoreline tower site at 61 Old Burleigh Rd, Surfers Paradise. Picture: Glenn Hampson

The Curl development at Bokarina on the Sunshine Coast.

It also had The Curl project at Bokarina Beach on the Sunshine Coast, and major projects in Canberra including the 184-unit Melrose, Stockland townhouse project The Parks and a much-anticipated redevelopment of the Belconnen Markets.

A statement released by Mr Carter on Tuesday described the administration as an “incredibly difficult decision”.

“This has been a gut-wrenching decision that we know will impact many lives and livelihoods,” the statement said.

The collapse was attributed to “record material costs, fixed price contracts, labour and material shortages, extreme rain events, floods, bushfires and wars”.

PBS said it had paid employee entitlements and would work with the administrators to “maximise value for our creditors”.

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

Gold Coast developers stung by the PBS collapse aren’t the only ones hunting for new builders for their incomplete projects – the billion-dollar V & A development at central Broadbeach parted ways with its builder Descon in February.

New ASIC figures have shown there have been 1284 construction industry insolvencies so far this financial year – the same number as the entire previous year.

Keylin Group managing director Louis Cheung said his company, for which PBS was building Serenity Reserve at Helensvale, had sought legal advice.

“This is of course incredibly disappointing news,” he said.

“PBS is an established and respected operator and it’s a tough day for our industry when a

leading builder with such a long and celebrated history finds itself in this situation.

“Our focus now is on our project, and our purchasers.

“We have sought legal advice and will assess all our options to navigate a way forward.”

A staff member at Marquee Developments, which is behind the Shoreline tower, said the developer was “reviewing that internally and won’t be making a comment”.