Construction group Rork Projects goes into administration as cost of living crisis and high interest rates ‘tsumani’ devastates building industry

Another construction company has gone into administration with higher interest rates and building costs blamed.

Rork Projects, which specialised in building refurbishments and commercial property, has appointed insolvency firm McGrath Nicol as administrators, with operations affected in NSW, Queensland, Victoria and the Australian Capital Territory.

Director Brian O’Rourke announced that several of his companies went into administration on Friday after 26 years.

‘It is with a heavy heart I announce that after 26 years of operations, Rork Projects was forced to commence voluntary administration on 1 March 2024,’ he said.

‘This was the final step in a long journey to find a solution for our staff, clients and subcontractors, and we acknowledge the devastating impact this outcome has on them.’

Mr O’Rourke said rising interest rates and building costs amounted to a ‘tsunami of impossible economic conditions’.

‘Builders are in crisis because of high interest rates, labour shortages and material supply constraints following the pandemic,’ he said.

While inflation has moderated to a two-year low of 4.1 per cent, he likened the present spate of building company collapses to the 1970s when inflation and unemployment were both high. 

‘The construction market is facing one of the worst storms since the mid-1970 crisis,’ Mr O’Rourke said.

‘While devastating for us, it is also damaging to the Australian economy and community.

‘Thank you to everyone who we have worked alongside.’

Rork Projects, which specialised in building refurbishments and commercial property, has appointed insolvency firm McGrath Nicol as administrators, with operations affected in NSW , Queensland , Victoria and the Australian Capital Territory