Yet another construction company has gone into administration as the industry experiences a financial crisis brought on by soaring building costs.
The Lloyd Group, a civil design and construction group, went into voluntary administration on Friday with about 59 projects still uncompleted, including 30 in New South Wales and 29 in Victoria.
The company appointed Deloitte Turnaround & Restructuring partners Sam Marsden, Sal Algeri, Jason Tracy and Tim Norman as voluntary administrators of six companies that make up the Lloyd group.
Starting off as a family-owned business from Melbourne’s south-east in 1979, the company has since expanded to employ about 200 people across offices in Geelong, Sydney and Brisbane.
The development came on the same day as one of Australia’s largest construction companies, Porter Davis Homes, went into liquidation with more than 1,500 projects still yet to be finished.
Yet another construction company, Lloyd Group, was placed into voluntary administration on Friday with 59 unfinished projects across New South Wales and Victoria
The Lloyd Group built a name for themselves by taking on community-based projects such as schools, sports facilities and government buildings.
It lists numerous schools and community centres among its completed projects, however many of its uncompleted projects are unknown.
One of the company’s 30 uncompleted jobs in NSW was constructing the Willowdale Sports Pavilion near the growing community of Leppington adjacent to the proposed Western Sydney Airport.
It was also commissioned by Blacktown City Council to construct a sports facility at Schofields in north-west Sydney.
‘It’s devastating for the community, as well as financially for us and probably the council as well,’ Sam Crawford, the project’s architect, told The Age.
Administrators will urgently assess the company’s finances across its numerous projects to determine its financial situation.
‘From the beginning, our culture of integrity, teamwork, excellence and innovation has been the cornerstone of our business,’ Lloyd Group’s website reads.
Construction giant, Porter Davis Homes, also went into administration on Friday leaving 1,500 homes unfinished across Melbourne and Brisbane
The construction industry in Australia has seen a rash of insolvencies due to soaring input costs
Victoria-based Porter Davis, which has been operating for more than 20 years and made $256million in revenue as recently as 2021, also went into liquidation on Friday.
The company is the 13th biggest home builder in the country and constructed 1,734 homes in the 2020-21 financial year.
The company left more than 1,500 homes under construction in Melbourne, another 200 in Queensland and another 779 projects were due to begin soon.
An owner of one of the unfinished houses, Sojuy Gosh, was brought to tears after finding out the company went into administration.
‘With all the time and energy we invested, it’s not something we expected,’ Mr Gosh told A Current Affair.
Father-of-two, Sojuy Gosh (pictured), was brought to tears after finding out Porter Davis was placed into administration while his house has been left unfinished
The father-of-two was told he and his family would be able to move into the home in May last year after giving hundreds of thousands of dollars to Porter Davis.
Construction costs increased at a record-high rate in mid 2022, costing almost 5 per cent more than the previous quarter.
The rate softened in the next quarter however, dropping to just below 2 per cent.
***
Read more at DailyMail.co.uk