This article is from the Australian Property Journal archive
NATIONAL builder Rork Projects is the latest construction company to bite the dust amid high interest rates, labour shortages and supply issues.
Three companies linked with commercial sector building firm Rork Projects went into administration on Friday. Rork Projects (Holdings) Pty Ltd, Rork Projects (QLD) Pty Ltd and Rork Projects Pty Ltd are now in the hands of administrators Anthony Connelly, Jamie Harris and Mark Holland, of McGrath Nicol.
Rork Projects currently has 63 current projects across NSW, the ACT, Queensland and Victoria.
“It is with a heavy heart I announce that after 26 years of operations, Rork Projects was forced to commence voluntary administration,” said company director Brian O’Rourke in a statement posted to the company’s website on Friday.
“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.”
He said, “Builders are in crisis because of high interest rates, labour shortages and material supply constraints following the pandemic”.
“The construction market is facing one of the worst storms since the mid-1970s crisis.
“While devastating for us, it is also damaging to the Australian economy and community.”
Administrators and receivers reports were made for more than 1,500 construction companies in the 2023 financial year, according to the Australian Securities & Investments Commission. The industry dominated the number of initial external administrators’ and receivers’ reports – accounting for 28% of the 5,440 recorded across all industries.
Construction company St Hilliers collapsed last month owing $52 million to creditors, subcontractors, suppliers and staff, while Cubitt’s Granny Flats and Home Extensions was place into voluntary administration last week with debts of $3.8 million and 120 projects impacted.
