What PBS Building administration means for Gold Coast, Brisbane, Hervey Bay, NSW & ACT projects

Projects across Australia are in limbo after national building group PBS Building went into administration on Tuesday. Find out what it means for staff, projects and creditors.

Projects across Australia are in limbo after national building giant PBS Building went into administration on Tuesday.

The collapse came a day after it locked up and abandoned development sites nationwide although the company says it has “secured not abandoned” sites with the “express purpose of not incurring any further expenses”.

This is everything we know about the company and its collapse.

What is PBS Building?

It is five companies that traded as PBS Building, based in Canberra with offices in Sydney and Brisbane.

PBS Building’s parent company, PBS Property Group, is directed by founder Ian Carter, 60, and CEO Adam Moore, 47, who both live in the ACT.

The PBS Building executive team.

How many staff does it have?

It employs 190 staff.

How old is PBS Building?

PBS was founded by Mr Carter and his brother Peter in 1989 and it expanded after being involved in the Sydney Olympic Village a decade later.

Ian Carter, chairman and founder of PBS Building

What projects was it involved in?

Its past and present projects are scattered from Sydney to Hervey Bay.

It was in the middle of building Gold Coast tower, the Marquee Developments’ 19-level Shoreline at Old Burleigh Rd in Surfers Paradise, and the sold-out Serenity Reserve townhouse project at Helensvale.

PBS Building’s past and present Queensland projects include the Hervey Bay Wetside Water Education Park, Botanica Residences, Latitude25 RV Lifestyle community, Wheller on the Park stages 3 & 4 and The Melbourne Residences in Brisbane.

Its past and present ACT and NSW projects include Goodwin Farrer Aged Care, Macquarie University student accommodation, Cooper Lodge stages 1 & 2, Belconnen Theatre and Felix8 International Hotel (now Citadines Connect).

What can creditors owed money do?

Creditors affected by the administration of the PBS Building construction companies should contact RSM via email at [e-mail] or on [phone].

What shape are their finances in?

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

PBS Building managing director Adam Moore.

What were the reasons given for the collapse?

A statement from PBS directors said there were a number of factors at play.

“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.”

A subcontractor who worked with PBS Building on three different projects over several years said the increased cost of materials and skills shortage were to blame for the industry’s troubles.

“It just shows the tough times in the market,” he said. “I have seen other builders go like Condev and there are rumours around that other builders are facing financial troubles.”

Originally published as What PBS Building administration means for Gold Coast, Brisbane, Hervey Bay, NSW & ACT projects