NSW construction group Stevens Construction is placed into voluntary administration

Work on dozens of construction projects in NSW have been suspended after a builder with more than 20 years experience called in administrators.

Stevens Construction has entered into voluntary administration. Source: Stevens Construction

Dozens of construction projects across NSW have been suspended until further notice after construction group Stevens Construction was placed into voluntary administration.

The Tier 2 commercial construction business, which has been operating across the state for 20 years, has undertaken projects for big names including Woolworths, Dan Murphy’s and the NSW Government.

Restructuring and insolvency group BRI Ferrier principals Jonathon Keenan, Andrew Cummins and Peter Krejci have been appointed by the directors of Stevens Construction as joint administrators.

“The Administrators will work closely with the Stevens Construction team as we investigate what has occurred and seek to identify options that may be available to clients, employees, subcontractors and suppliers of the company,” Mr Keenan said.

Construction on 10 projects currently being worked on by the group across the Central Coast and Sydney metro area have been suspended while the administrators conduct an assessment of the company’s affairs and explore options to restructure the business or maximise returns to creditors in the way of a sale.

The company worked on Woolworths Crows Nest and the North Sydney Council carpark complex. Source: Stevens Construction.

The Australian understands that all 40 workers employed by the company have not been stood down.

The voluntary administration of Stevens Construction that is based at Erina on the Central Coast, is another blow for the struggling construction industry which has come under pressure in the past two years from a combination of inflation, rising interest rates and a slowdown in demand.

The fixed-price nature of the industry means that operators function on low margins and high turnover to stay afloat.

Stevens Construction said in a statement that the construction industry has faced significant challenges since the onset of the Covid-19 pandemic including skyrocketing building costs, reduced productivity, and critical shortages of materials and skilled labour.

“These factors have collectively placed immense pressure on Stevens Construction, making continued operations unsustainable,” the company said.

“We are acutely aware of the distress this news will cause to all those involved — our valued staff, suppliers, subcontractors, design consultants, and principals.”

The company has worked on several Dan Murphy’s outlets.

“We want to express our profound gratitude for your unwavering support and contributions over the past 18 years. Our priority now is to work closely with the appointed administrators to explore all possible avenues for a viable way forward.”

Recent ASIC data shows that construction-related businesses continue to make up the bulk of all businesses going insolvency, with 2398 going under in the 10 months to April 30, or a 37 per cent increase from the previous period.

Industry watchers have told The Australian previously that mid-tier builders have been the hardest hit, having come unstuck by looking to aggressively increase their pipeline of projects during the pandemic.

Established on the Central Coast, Stevens Construction has undertaken projects in retail, industrial, hospitality, tertiary, aged care, seniors living and high-rise apartments. The group was founded by Steven Mailey, a veteran of the industry who has 36 years of experience.

Stevens Construction director Steve Mailey is a veteran of the industry.

Its website says the company is “synonymous with meticulous safety, proficient selection of materials, and excellent construction and quality control processes” and strives to complete projects on time and retain all existing clients.

The group counts plenty of blue chip companies as clients including Woolworths, Coles, McDonald’s, Dan Murphy’s, BP and the NSW Government.

Work done by the company includes the Crows Nest Shopping Centre, Dan Murphy’s Gladesville and Woolworths Gloucester.

The First Creditors Report and details of the First Creditors’ Meeting will be issued in the coming days.