Australian construction company on verge of collapse
By Catrin Jones25 February 2022
Probuild, an Australian construction company, is on the verge of collapse with the Melbourne-based firm reportedly contacting administrators.
The company is said to be in such a perilous financial position due to general pressures, such as rising material costs, delays due to Covid-19 and a shortage of skilled workers, and due to the rising costs of a high-rise project in Brisbane that has led the company into millions in debt.
Last year, Probuild made AUD$1.3 billion (US$90 million) in revenue and AUD$4 million (US$2.8 million) profit.
Lengthy delays on the high-rise project 443 Queen Street building have meant the company has lost as much as AUD$120 million (US$85 million) despite the pandemic-driven construction boom.
The high-quality residential apartment complex is well behind its late-2021 completion date and the future of the project is uncertain.
Probuild is behind several iconic recent builds in Australia, including the Melbourne Convention Centre.