The construction collapses keep coming. One of the largest civil engineering firms in Adelaide has collapsed into administration, with 100 jobs now at risk, just one week after a separate firm fell over with more than $1 million in debt.
The news comes as the construction industry continues to do poorly across the country, despite a large jump in building approvals last month and some interest rate relief from the Reserve Bank.
Back in March, it was revealed 80 construction firms collapsed nationwide in just one month.
ADCIV, one of the city’s largest construction firms, has now entered administration, with Tim Clifton and Mark Hall of Clifton Hall appointed. It comes just one week after home construction business Red Ochre fell with more than $1 million in debt, and a few months after industry giant Hastie Group also collapsed.
Clifton told SmartCompany this morning that the Adelaide market is suffering hard times.
“I’ve just had two little companies go under as well,” he says.
And while Clifton said he has only been on the ADCIV case for a short time, it appears the business was unable to get work.
“The directors tell me they’ve been tendering pretty hard lately, and just haven’t been able to get any work. They were at 3% margins and not winning anything, so it’s pretty desperate times.”
“You’ve got 100 employees to look after, and you just can’t stop incurring these costs like wages.”
The staff have been stood down for two days with full pay, as Clifton prepares for a meeting on Monday to decide whether the company can go forward or not. It has 12 projects underway right now.
It has been reported the firm turned over $50 million during the previous financial year, but only managed a loss of $181,000. It is understood the company is owed about $8.8 million, but Clifton was unable to confirm these figures.
Earlier this year, ADCIV scored a $2 million contract from the South Australian Government for the Seaford Industry Park project.
The firm has been operating for more than 20 years, with directors Walter Pavlic, Tony Finnegan and Grant Armstrong all having worked in the business for several years.
Comments