This article is from the Australian Property Journal archive
MORE than 120 staff across the country have been left without jobs after building contractor Fire Services Australia (FSA) Group went into voluntary administration owing over $10 million, becoming the latest casualty of the tough construction environment.
FSA offered electrical and mechanical installations and fire protection services across multiple construction projects, with offices in NSW, the ACT, Queensland and Western Australia.
However, the major floods in Queensland earlier this year impacted the group’s ability to carry out their work and smashed its revenue.
There have been 264 creditors identified so far that are owed $10.6 million, according to News Corp, including employees, the Australian Taxation Office, and other contractors and suppliers.
Rising construction materials, labour costs and the prohibitive weather conditions have smashed the construction industry. In Queensland, building firm Solido Builders appointed liquidators in recent weeks, just days after the collapse of Pivotal Homes, while the country’s largest home builder Metricon received a $30 million capital injection from its owners and support from the Commonwealth Bank as it sought to ward off ongoing industry and media speculation about its viability.
Another Queensland company, Condev, collapsed in March with $1 billion worth of projects – just two weeks after construction giant Probuild called in administrators with $5 billion worth of projects on the go, rocking the industry.
In Australian Property Journal’s latest Talking Property podcast episode, MaxCap Group’s Victoria state director Johnny Woodhouse suggested that despite the collapse of Probuild, the rapid emergence of Roberts Co shows market fundamentals still stack up.
