Collapsed builder Stride Construction chasing $1.8m in unpaid debts to repay contractors

The embattled builder has told creditors it is chasing millions for unpaid jobs as the list of affected taxpayer-funded projects emerges.

An embattled South Australian builder is entering administration reportedly owing up to $2m, leaving subcontractors chasing money for unpaid work.

The ongoing collapse has also cast uncertainty over several taxpayer-funded infrastructure projects across the state – including the Heights School in Modbury, Strathalbyn Town Hall and $1.2m worth of improvements to Hope Valley Sporting Club.

On Saturday, The Advertiser reported that the SA and Queensland builder had stopped work on several sites and laid off up to 15 employees.

On Monday, Stride’s sole director David Angus wrote to creditors telling them the company was trying to wrestle $1.8m in unpaid invoices to pay its subcontractors.

Mr Angus said he had no choice but to appoint an administrator with legal powers to recover the money.

Stride Construction's Warradale office was closed last Friday while its landline was also unattended. Picture: Dave Kirner

“Despite providing significant personal cash injections, securing business loans, and exhausting all possible recovery avenues, we have been unable to recover these outstanding debts,” Mr Angus said.

“I have personally invested all possible time, money and effort into pursuing these debts, to the extent that I have liquidated personal assets to keep the business afloat.

“These circumstances have been outside of Stride’s control, which is heartbreaking given our business is built on integrity and the partnerships we have.”

Stride recently completed a facelift for the SeaLink building at 440 King William St. Picture: Facebook

Mr Angus said that legal action had already been taken against some of the debtors.

A longstanding contractor for Stride said he was owed $180k and expected to be left with “scraps” after employees and secured creditors were paid.

He also said he was planning to remortgage his house and said “something needs to change to protect contractors more”.

“I’ve been running this business for eight years, and it’s just devastating, really,” he said.

“It takes years to get to where we are, and it can all get taken away overnight.

“This happens far too often and it is ruining small businesses and the families running them.”

Stride was contracted by the state government for several incomplete or uncommenced building projects.

Tea Tree Gully Council is now searching for another builder to deliver $1.2m in upgrades to the Hope Valley Sporting Club. Picture: Tea Tree Gully Council

Hope Valley Sporting Club chairman Scott Dykstra said athletes were looking forward to seeing their refurbished playing grounds, but the local council has now been forced to shop for new builders.

“The extra storage and parking is the sort of thing we really needed, but the cricket nets for example haven’t been changed in about twenty, twenty-five years,” Mr Dykstra said.

A spokeswoman for Tea Tree Gully Council said the builder signalled it was experiencing “financial challenges” and the council is “currently working through what impact this may have”.

“While it’s still very early days in the assessment, it’s not expected that the timeline will be impacted too heavily at this stage as the design phase is still being finalised and construction is yet to commence,” the spokeswoman said.

At least 400 construction companies across Australia have already gone bust in 2024 according to data from Alares Credit Insights.

Originally published as Collapsed builder Stride Construction chasing $1.8m in unpaid debts to repay contractors