Condev collapse: Beginning of the end as building giant tears down signs

The owners of collapsed Queensland construction giant Condev fought back tears as they spoke of the “perfect storm” that crippled their company and left them with “no choice” but to put it into liquidation.

Condev owners Steve and Tracy Marais have fought back tears as they told how the collapse of their company felt like ‘a funeral’.

They were speaking at a media conference at the Gold Coast builder’s Varsity Lakes headquarters just minutes after they officially put the company into liquidation.

“The ink isn’t dry yet but we are formally in liquidation,” Mrs Marais said, tears welling in her eyes.

“We advised our staff there was no need to come to work today but there’s so many here. It’s like being at a funeral.”

Mrs Marais said Condev had a ‘very good relationship’ with developers and were ‘very disappointed they didn’t come to the party’ and agree to a bailout.

“We believed they would come to the party,” she said.

Condev founder Steve Marais breaks down as he reveals why the Queensland construction giant collapsed.

“We believe that if people stand together that the impossible is possible … we still believe that they (developers) don’t understand what they’re doing (in not supporting the bailout).

“We really do believe that they don’t understand the market enough.”

But Mrs Marais said the developers had agreed to take over their projects and pay subcontractors what they were owed according to Condev invoices.

Mrs Marais said Condev had been hit by a “perfect storm” of soaring construction costs, material and labour shortages, Covid and bad weather.

Tracey Marais fights back tears.

She said Condev had money to pay accounts for the next three months but took the ‘extreme’ step of going into liquidation so as not to ‘hurt people more’.

“We didn’t have a choice without developer support,” she said.

A tearful Mr Marais said builders and subcontractors needed ‘more respect’ from the development industry which had to have ‘a recalibration’

“I’ve been in the industry for 42 years and loved every moment except the last 15 months,” he said.

“We move on and hope everything works out for everybody else.”

Condev founders Steve and Tracey Marais at their company’s Robina headquarters.

Mrs Marais also said she feared other big builders could be facing the same fate as Condev.

“I don’t think potentially, I think for sure,” she said.

“I won’t mention names – that would be cruel because we didn’t like hearing these things (rumours of strife) about ourselves.

“Whatever they say (about other builders being in trouble) is what we’ve been through.”

Condev signage has been removed from the Natura high-rise project at Burleigh Heads and security guards have been posted.

Guards are also on duty at the shuttered triple tower Capital Court project at Varsity Lakes which Condev was building for developer Homecorp.

In a email to staff and supports on Tuesday night, Mrs Marais confirmed the company had lost its lifeline.

Condev said the company was in the process of appointing a liquidator, details of which would be advised shortly.

Condev building sites are quiet. Allure at Chevron Island. Picture Glenn Hampson

Mr and Mrs Marais said they were “absolutely devastated for the Condev family of employees, our tradespeople and our affiliates”.

The Marais’ lawyer Derek Cronin, of Cronin Miller Lawyers, said plans were being finalised to appoint a liquidator.

“Our clients have considered that the only option open to Condev is to appoint a liquidator to manage Condev’s affairs,” said Mr Cronin.

“Although we are instructed that the company is currently solvent, the decision was made based on forward projections dictated by increasingly challenging market conditions including the exponential rise in material costs.

The Natura project at Burleigh Heads, where signs have been removed. Picture: Greg Stolz

“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.

“Their charity arm Condev Cares has raised hundreds of thousands of dollars over the last decade for those in need in addition to being an employer of choice, and it is just simply a sad time.”

Condev building signage is being removed. Picture: Glenn Hampson

Mr and Mrs Marais sent an email to staff on Tuesday night confirming that the company had lost its lifeline.

“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,” the email reads. “ Liquidators will be appointed tomorrow (Wednesday).

Ms Marais told staff there was no requirement for them to come to work.

“We never dreamed this would be possible but we also never dreamed the world would be affected by a coronavirus and price hikes that would put us out of business,” she said.

Developers from around the country met on the Gold Coast on Monday with Condev where they were told the company needed more cash to finish off projects.

The developers, who have contracted Condev to build 18 projects across Queensland worth up to $1bn, were told construction costs had skyrocketed 25 per cent in the past 18 months amid the impact of the Covid-19 pandemic and more recent flooding.

Originally published as Condev collapse: Beginning of the end as building giant tears down signs