Hundreds of units in limbo after builder GCB Constructions collapses into administration

Another major Australian construction company has been placed into administration, with workers stood down and construction halted on hundreds of units.

A Gold Coast construction company responsible for the building of hundreds of apartments has collapsed into administration.

GCB Constructions entered administration on Wednesday, just one day after it had its building licence suspended.

The Queensland Building and Construction Commission (QBCC) suspended the company’s licence after it allegedly failed to pay debts.

Construction on approximately 500 units has been halted in the wake of that decision.

The company's building licence was suspended on Tuesday.

Workers from GCB were stood down this morning when it was announced that the company was entering administration.

David Stimpson and Adam Kersey of SV Partners have been appointed as administrators of the embattled construction company.

“It’s very early days, we’re doing a million things at once, communicating with the major stakeholders including creditors, employees, principals on the projects,” Mr Stimpson said.

“We’re crunching the numbers to figure out what the asset-liability is. We’ll do what we can to recover funds for creditors.”

Less than a week ago, GCB’s managing director Trent Clark defended the company, saying he was “determined and confident” that it would overcome its financial struggles.

GCB Constructions has been a major player in apartment building on the Gold Coast since the 1980s.

“Court actions are regularly taken against builders and we are working through these in an orderly fashion,” he said in a statement to Gold Coast Bulletin.

“We have had court adjudications in our favour and we are looking forward to others also being ruled in our favour so we can get on with servicing our clients and customers.”

GCB Constructions has been contacted for comment.

The company is not the only builder to run into trouble this week, with WA company Modco Residential also entering into administration on Monday.

Modco has faced accusations about unpaid subcontractors, inactivity on projects and premature demands for progress payments.

Perth-based firm GTS Advisory has been announced as the administrator of the company founded by influencer couple Cynthia Lu and Yusuf Khan.

Perth glamour couple Yusuf Khan and Cynthia Lu have had their construction company Modco Residential collapse.

The company’s director Damien Clancy has apologised for the company not being able to meet its commitments.

“Despite our efforts to overcome adversities expected in building a growing business, the rapid and unforeseen external challenges ranging from unprecedented industry challenges, perpetuated by a series of controversial articles that created distrust amongst stakeholders became an insurmountable challenge,” Mr Clancy said.

“What initially started as a nationwide industry challenge of increased costs of materials and labour and shortage of skilled trade forcing many builders into administration in the past financial year, was then exacerbated by the intense media scrutiny targeting Modco Residential creating distrust amongst our trades, vendors, staff, shareholders, clients and the industry insurer QBE.

Modco's managing director has apologised to customers in the wake of the administration announcement.

“This caused significant strain on business operations and made it exceptionally challenging for us to acquire skilled tradespeople, retain staff and continue our operations.”

Building and Energy executive director Saj Abdoolakhan has urged those who have contracts and HII policies with the company to contact QBE to discuss arrangements.

“This enables homeowners to begin the process of engaging another registered builder to complete the work or to pursue other remedies,” Mr Abdoolakhan said