Gold Coast builder Pivotal Homes, which has built more than 1,500 homes during its 15 years of operation, has been liquidated.
Key points:
- Pivotal Homes went into liquidation Thursday afternoon
- Its director says rising costs have made operations unfeasible
- The company has 16 employees on the Gold Coast
“Unfortunately, the rising costs that are affecting many of the industry across Australia have made our operations unviable,” CEO Michael Irwin said on Thursday afternoon.
“In my 30 years of experience, I’ve never seen a set of circumstances like this, and obviously we’re not alone in such unfortunate conditions that the industry is facing.
“We are absolutely devastated by our 16 Pivotal Homes employees and ensure that all creditors, contractors and subcontractors have been paid in full.”
Derek Cronin of Cronin Miller Litigation, acting on behalf of the company, said Pivotal had 103 contracts under construction and 177 more pending board approval.
Mr Cronin said rising trade costs, delays, the pandemic and recent weather events had affected the industry.
“Unfortunately, this is the result of a number of factors that are quite prominent in the industry right now.”
Chris Cook and James Robba of Worrells have been appointed as liquidators.
Another Gold Coast construction company, Condev, collapsed earlier this year. (ABC News: Kirsten Webster)
An industry-wide problem
The disappearance of Pivotal following the collapse of the construction companies Probuild and Condev earlier this year.
“All of these are examples of highly successful companies that are severely affected not by one event but by the combination of various events that take place,” Cronin said.
“You have a really solid business that has otherwise been profitable, and all of these important events that happened at the same time have resulted in a solid company that is now in liquidation.”
Cronin said it reflected the state of the industry.
“It will really affect customers of builders, homeowners and potential homeowners and the construction industry in general.
“The Gold Coast depends a lot on this industry, so I think we need to look closely at what solutions exist to move forward.”
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Posted 1 Hr 1 Hour ago, May 26, 2022 at 8:47 AM, Last Updated 1 Hr, 1 Hour ago, Thu, May 26, 2022 at 8:52 AM