Huge show of support for Metricon amid collapse fears

Suppliers and subcontractors are rallying behind Metricon as rumours continue to swirl about the embattled home building giant.

Suppliers for Metricon have come out in an incredible show of support for the home building giant, amid fears the company could be on the verge of collapse.

There has been speculation for days that Australia’s biggest builder is at risk of going under amid claims of financial issues and recent crisis talks with the Victorian Government.

Staff are also mourning the sudden death of Metricon founder and CEO Mario Biasin, who died unexpectedly last week at the age of 71, after reportedly experiencing mental health issues.

His death came just days before rumours about the company’s future began to swirl.

But suppliers and subcontractors for the company are sticking by Metricon’s side, launching a national ad campaign as part of a major show of support.

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Suppliers and subcontractors have thrown their support behind Metricon. Picture: Supplied

“We’re standing with Australia’s largest home builder, Metricon,” the ad states.

“Australia’s leading suppliers to the building industry proudly support all our partner builders.”

The ad also included the logos of leading brands such as Dulux, Fisher & Paykel, Fujitsu, Beacon Lighting Commercial and Civic Shower Screens and Wardrobes.

Civic Screens chief executive Stefan Styles told The Australian that Metricon had “never done anything wrong” and were always on time with payments.

“We don’t believe the company is in trouble,” he said.

“The problem is that customers will become nervous and it will become a self-fulfilling prophecy.”

An email sent from subcontractors to one supplier on Friday called for ongoing support for Metricon, The Australian revealed.

“We are all key suppliers of Metricon, and right now they need our help to change the public sentiment around their position. I am proud to be part of a supplier led-campaign for Metricon in Melbourne and are looking to roll this out nationally,” the email stated.

“This campaign includes print advertisements this weekend and will require a financial commitment.”

Despite the rumours, subcontractors have said they haven’t heard of any workers who haven’t been paid for their services. Picture: David Caird

Subbies United founder John Goddard there was no evidence subcontractors had done unpaid work.

“I have not heard of one subcontractor who has not been paid on time by Metricon. Not one,” the Gold Coast Bulletin reported him saying in a note to members.

“Another phenomenon of the times is cancelling people, in this case its cancelling Australia’s biggest builder.”

Last week, acting CEO Peter Langfelder shot down allegations surrounding the company, declaring it was “business as usual” in a press conference on a building site, although he admitted the company was experiencing some delays on projects.

“We’ve got a strong history of performance, all our contracts in place are profitable, we’re completely up to date with all our trades, our suppliers, our employees, commissions, everything is completely up to date,” he said.

“In terms of our business, it’s just business as usual.

“Our business has been very strong for 45 years and will continue to [be] for a long time to come.”

The company has denied claims it is on the verge of collapse.

Despite Mr Langfelder’s claims, reports emerged that Metricon representatives met with the Victorian Government for crisis talks about the escalating issues plaguing the sector, including the surging costs of essential materials such as timber and steel.

This comes amid revelations that taxpayers may have to fork out more than $28 million to bail out families left with unfinished homes if Metricon goes under.

Senior government sources and former HIA chief economist Harley Dale told The Daily Telegraph they fear NSW’s Home Building Compensation Fund could be overwhelmed by 350 homeowners who may make claims for unfinished work.

The fund covers people for up to 20 per cent of the contract cost. With the average build in NSW costing around $400,000 and Metricon having 350 active construction sites around the state, it is estimated that taxpayers could be forced to fork out up to $28 million in NSW alone.

Each state and territory also runs similar schemes, which could see the cost to taxpayers balloon even further in the event of a collapse.

Originally published as Huge show of support for Metricon amid collapse fears