Another construction company has gone to the wall as Western Sydney’s Zadro Constructions entered administration yesterday.
On the outside, it appeared healthy having recently completed 14 school infrastructure projects in Sydney’s west and north, a contract on the WestConnex motorway, and restoration of multiple churches, according to 7NEWS.
A detailed report outlining the causes of the company’s failure will be provided to creditors in the coming weeks when the administrators have completed their investigations.
Fixed price contracts, rising costs, issues in the supply chain and labour shortages are to blame for the downfalls, 7NEWS reported.
ASIC insolvency statistics show that 2213 building companies had collapsed during the 2022-23 financial year, a 72% increase on the previous 12-month period. It was the highest rate reported in more than a decade and is continuing throughout 2023.
Just over a week ago, a South Australian construction company involved in the building of One Festival Tower for Walker Corporation, collapsed with liquidators appointed to investigate why.
Wake Concepts, which celebrated its 40th anniversary last year, left more than 200 projects in the mid- or pre-construction phase and around 100 workers out of a job.
Throughout its lifetime, the company had been involved in major infrastructure and construction projects across South Australia including the Oval Hotel (pictured), Sofitel’s Luminesque Apartments, and Ashford Hospital.
According to liquidators from Duncan Powell, the company owed more than $4.5 million to unsecured creditors but the priority is to ensure its employees are paid.
Image: Cox Architecture