Condev Construction to enter liquidation in another major industry collapse

Another major Australian construction firm has collapsed with staff told not to come into work as liquidators are appointed.

Australian construction firm, Condev will go into liquidation after failing to secure a reported bid for $25 million from developers.

The Gold Coast-based builder announced Tuesday a liquidator was being sought to take over its affairs.

Last month, another local construction giant, Probuild was placed into administration citing similar issues with rising business costs.

Condev founders Steve and Tracey Marais met with some of Australia biggest developers earlier in the week to ask for assistance, but were unsuccessful, The Australian reported.

On Tuesday they said in a statement they were, “absolutely devastated for the Condev family of employees, our tradespeople and our affiliates.”

A lawyer for the couple explained the decision was made based on “forward projections dictated by increasingly challenging market conditions including the exponential rise in material costs.”

“This has been extremely stressful for Steve and Tracy who are highly regarded in the industry and the Gold Coast community as tier one corporate citizens,” they said.

Condev is reported to have been seeking $25 million from developers to keep the company afloat. Picture Glenn Hampson

In a heartfelt email the couple told staff not to come in to work on Wednesday.

“It is with the heaviest heart that we advise that we have not been able to achieve the outcome from (Monday’s) meeting with developers that we’d hoped and the decision to proceed to the liquidation of Condev Construction is now a matter of course,” they said.

In the email they referenced the global pandemic and materials price hikes as contributing to putting them out of business.

One subcontractor told The Australian the company had tried to do the right thing and been transparent with their issues.

“Obviously they owe us money and it’s not ideal but they didn’t do this on purpose. They’ve just gone in too keen (underpriced) on some jobs and it hasn’t worked out,” they said.

“We just need a quick resolution so that other builders can take over the jobs. The sooner life gets back to normal, the better.”

They added, “it could be the tip of the iceberg as far as the way the industry is going”.

Workers began packing up their tools from Monday as rumours circulated about the company’s fate. Picture Glenn Hampson

Workers were seen packing up their tools on Queensland worksites from Monday afternoon as rumours of the company’s fate circulated.

The company specialised in a range of different types of projects, primarily in Queensland, from multi-unit dwellings to warehouses.

It is also is reported to have been contracted to build 18 new projects in partnership with developers it met earlier in the week, valued at $1 billion.

They 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.

However, the pipeline was disrupted by skyrocketing construction costs, which rose 25 per cent in the past 18 months amid the impact of the Covid-19 pandemic and recent flooding.

Another subcontractor who told The Australian he expected to lose the money he was owed by Condev, said he accepted that fact.

“They’ve always been very good to all the subcontractors and always paid exactly on time,” he said.

“There’s never been an inkling of them not doing the right thing. I can only speak highly of them.”