Labour shortages & material costs push builder into admin

ANOTHER builder has folded under the pressures of rising costs and labour shortages, with NSW builder Elderton Homes entering administration.

Established in 2009 in the Hills District, Elderton Homes has constructed thousands of dwellings across Sydney, the Central Coast and Illawarra.

Elderton Homes has appointed Liam Bailey and Chris Palmer of O’Brien Palmer as administrators, after compounding pressures in the industry left running the business of more than 50 team members too costly.

“This has been a difficult decision and a result of several factors, not limited to but including bushfires, floods, a global health pandemic and economic conditions,” said Elderton Homes in a statement.

“The impact of these events continue today. Furthermore, the construction industry has also been subject to record levels of rainfall, substantial price increases on building materials, supply chain challenges and labour shortages.”

Elderton Homes is just the latest in a year filled with collapses across the construction industry, including major developers and builders such as  ProBuild, Multibillion-dollar developer Caydon Property Group, and Queensland builder Condev.

Clough Group amongst the most recent, after WeBuild pulled out of its $350 million merger with major Western Australian building and engineering company.

This came just over a week after Western Australian FIRM Construction also entered administration, leaving $80 million worth of under-construction Perth projects in limbo.