Victorian homebuilder Waterford Homes the latest constructor to call in the liquidators
The Geelong-based company is the latest construction firm to struggle as material costs and fixed-price contacts dig into the sector.
The turmoil rippling through Australia’s construction sector appears to have sunk another builder, with Victorian company Waterford Homes the latest to appoint a liquidator.
On Saturday, News.com.au reported Geelong-based Waterford Homes recently appointed Ben te Wierik of BTW Advisory to oversee its liquidation.
Creditors include 10 homeowners with properties yet to be fully completed, te Wierik told the publication.
At least 60 creditors have been identified to date, including tradespeople and the Australian Taxation Office, he said.
Claims made so far stand in excess of $600,000, but that figure is expected to climb, te Wierik added.
The reported liquidation comes as builders across the map shoulder the burden of surging material costs, a shortage of qualified labour, and fixed-price contracts signed when critical resources commanded far lower prices.
“It’s early days in terms of investigating the Company’s affairs and the reasons for its failure, however it’s likely the above issues impacted on Waterford Homes’ cashflow and contributed to its failure,” te Wierik told SmartCompany on Monday.
Homeowners whose contracts with Waterford Homes are covered by domestic building insurance “can now make a claim under those policies for any loss and damage they have suffered for incomplete and/or defective workmanship,” he added.
Impacted homeowners have been advised to process those claims through the Victorian Managed Insurance Authority.
The liquidation is only the latest in a string of unfortunate company collapses across the map.
Queensland-based Solido Builders collapsed in May, days after Sunshine Coast builder Pivotal Homes revealed it had called in the liquidators.
Earlier in the month, Sydney-based Next reportedly entered voluntary administration.
The collapse of two WA-based home builders in April led construction industry leaders to project a spate of business implosions.
According to CreditorWatch, construction is still the business sector most likely to be in arrears by 60 days or more.
In May, some 11.7% of businesses in the sector were significantly behind on their payments.
“Fixed-price contracts that are unique to the sector remain a serious drag on profitability, and insolvency activity will increase over 2022,” CreditorWatch CEO Patrick Coghlan said in a statement.
