South Australian construction firm Candetti Constructions has been placed in administration as the industry continues to suffer a downturn, with building approval figures remaining low and lengthy approval processes keeping new business grounded.
The collapse comes as the company had just competed the new State Aquatic Centre in Mario, for which it is owed about $30 million.
According to administrators Stephen Duncan and Chris Powell of Korda Mentha, a creditors’ meeting is scheduled for some time before Christmas, noting the business appears to be owed more money that it owes.
“A priority of the joint Administrators is therefore to work with Candetti in securing these substantial unpaid amounts for work already completed,” Duncan said in a statement.
“Candetti’s creditors, mainly sub-contractors, are owed in the vicinity of $7 million and a substantial part of that relates to the aquatic centre project.”
Duncan said a main priority will be put on pursuing these claims to help the company reclaim its position in the industry.
Duncan was contacted this morning by SmartCompany, but was unavailable prior to publication. However, Candetti continues to trade.
Candetti was founded in 1958 and has remained South Australian owned. It has built major developments including the GP-Plus and car park facilities at Marion, along with sulphur storage facilities in Port Adelaide.
The business has also earned accreditation under the Government’s Building and Construction OHS Accreditation Scheme.
Chairman Alex Candetti said in a statement he requested the company be put into voluntary administration, saying it is the best option to ensure the company can move forward.
“Significantly, the large percentage of our sub-contractors have been supportive of Candetti during this difficult period and we are most grateful for their continued support and understanding.”
“My priority has been to work with these people towards having them paid and I will continue to do so in partnership with the Administrators.”
Candetti also mentioned he was disappointed the Government had complained about the Aquatic Centre through the media.
“Rather than join the trial-by-media path attempted by the State Government, our choice is to pursue what we are owed through the proper channels,” he said.
The property industry has been under enormous pressure this year. Figures from ASIC show it is the industry suffering the highest number of insolvency appointments.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
