Tradies speak out after Probuild construction company collapses

The collapse of Probuild and 17 other Aussie companies has taken workers by surprise, with many left unable to support their families.

Staff and contractors for building giant Probuild have been left reeling after the major construction company abruptly announced it had gone bust.

On Thursday, South African corporation WBHO confirmed it was entering voluntary administration.

It acts as the parent company for Probuild as well as 18 other building businesses, prompting thousands of Australians to become unemployed in an instant.

While Probuild directly employs around 750 staff, thousands more are working as subcontractors – and they are concerned.

Managers informed tradies they have a week to collect their tools at Probuild sites across Australia including 13 projects in Victoria, three in NSW, one in Queensland and one in Western Australia.

One man who wanted to remain unnamed informed news.com.au that Probuild owed his contractor firm hundreds of thousands of dollars, if not millions.

The dad said he had a wife and kids to support and that he had been subcontracting with the company for the past five years.

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Workers remove equipment from a Probuild construction site adjacent to Caulfield Racecourse in Melbourne's southeast. Picture: NCA NewsWire / Andrew Henshaw

“Forty per cent of the workforce is casual, they’ll go,” the man warned. “They’ll be out of work.

“Luckily we [my firm] have some other projects.”

He wasn’t the only one frustrated by the sudden collapse of the company.

A peeved contractor said the situation was “tough” and that everyone just wanted their jobs back.

He called the company a “shark”, adding: “It’s all a big game.”

The anonymous worker was at a previous company that went bust but six months later, they had set up again under a new name, completely debt-free, something he says happens frequently in the construction industry.

Another contractor said he had come from a previous job where the company had also gone under.

He thought he could rest easy at Probuild, one of Australia’s largest construction companies.

“None of us knew this was coming,” he added.

Probuild signage on a construction site. The company announced it was going into administration this week. Picture: NCA NewsWire / Andrew Henshaw

Deloitte has been appointed as administrators to handle the fallout.

The construction industry is facing serious headwinds from skyrocketing prices and Covid-induced delays.

Probuild raked in $1.3 billion in revenue and made $4 million profit last year, but the 443 Queen St project which involved high-quality apartments has haemorrhaged as much as $120 million.

Probuild Constructions (Aust) reportedly injected $15 million into the company last year as part of a recapitalisation to combat the Queensland division’s losses.

Abandoned equipment at a Probuild construction site. Picture: NCA NewsWire / Andrew Henshaw

It’s believed Probuild’s collapse will have far-reaching ramifications across the entire construction industry in Australia.

An insolvency expert said but Probuild’s demise would also have a chilling “domino effect” on the sector.

Andrew Spring, partner at insolvency firm Jirsch Sutherland, previously told news.com.au the collapse of one of Australia’s largest builders would cause natural fear throughout the industry and create heartache for the subcontractors as the financial distress flowed through the chain to hit each level.

“People will be reviewing contracts and looking at where they can protect their own interests and the idea to help each other through it is less likely when that confidence level drops.”

Probuild is one of only a handful of major builders in Australia that can complete large scale projects.

The firm is behind several iconic recent builds, including the Melbourne Convention Centre and new Victorian Police headquarters, as well as Sydney’s new glass “IMAX” building in Darling Harbour.

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