This article is from the Australian Property Journal archive
A 19-level residential tower and sold-out townhouse project on the Gold Coast are in limbo after national construction company PBS Building deserted its building sites, as high materials costs and labour shortages continue to dog the industry into 2023.
The Canberra-based builder has removed its website from public viewing and shut down its social media pages, following subcontractors at some of its sites removing equipment on Friday.
It employs 190 people has offices in Sydney and Brisbane, with current and past projects in Sydney, on the Gold Coast and in Hervey Bay, that include residential, commercial, industrial, aged care and mixed-use builds.
Current projects include Marquee Developments’ Shoreline apartment tower at Old Burleigh Road in Surfers Paradise, and Keylin Group’s sold-out Serenity Reserve 86-townhouse project in Helensvale.
PBS had reported a $2.56 million loss in 2022, according to its annual financial statement lodged with the Australian Securities and Investments in Commission. In 2021, it posted a $3.26 million profit.
In response to reports of PBS abandoning its building sits, the CFMEU called for national security of payment reform laws that protect workers, subcontractors and small business.
“The federal government must urgently make good on its election promise to implement nationally consistent security of payment laws,” said incoming CFMEU national secretary Zach Smith.
“Too many subcontractors and workers simply don’t get paid when companies like PBS collapse.”
“It is unacceptable people are not getting paid for their hard work. Subbies and workers being ripped off when businesses are liquidated is one of the biggest problems in our industry.”
Construction industry woes continue
High-rise and luxury apartments developer EQ Constructions was among the first builders to collapse this year, owing at least $40 million to $50 million, following a tumultuous 2022 for the industry that saw a number of major developers go under.
The collapse of Elderton Homes capped off the tough year, which was smashed by rising material costs, supply chain issues and labour shortages. Major casualties included such as ProBuild, multibillion-dollar developer Caydon Property Group, and Queensland builder Condev, leaving billions of projects across the country in limbo.
