Queensland construction firm Kondev faces collapse with $1 billion in projects and 125 jobs in the air
The second major building firm is facing COLLAPSE with $1 billion in projects and 125 jobs on the line, just weeks after ProBuild’s crash.
- Queensland construction giant Kondev met with developers on Monday
- Company faces collapse amid labor shortage, floods, rising material cost
- It comes just weeks after construction firm ProBuild entered administration
- Condev, which currently has 18 projects in hand, is in discussions to draw up a rescue plan
Queensland construction giant Kondev is facing collapse, putting $1 billion in projects and 125 jobs to wind up as the company is rocked by labor shortages, flooding and rising material costs.
The giant building firm met with developers on Monday afternoon in a last-ditch bid to rescue the company, which has projects worth hundreds of millions of dollars in the state’s southeast.
Discussions are underway to create a rescue plan to stop Condew – one of the largest construction companies in Queensland – with developers assessing how the projects can be finished without further financial loss.
It comes just weeks after ProBuild was put into voluntary administration after falling into multimillion-dollar debt, leaving hundreds unemployed and dozens of projects unfinished.
Queensland construction giant Kondev is facing financial ruin after being ravaged by back-to-back issues, including labor shortages, rising material costs and flooding.
The Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) described Kondev as ‘waiting to collapse’ after being ravaged by a ‘perfect storm’ of issues.
CFMEU State Secretary Michael Rauber said the company’s financial crunch was due to ‘low bidding on jobs, poor project management and quality control’. courier mail Report.
Subcontractors at the company’s Rivier project at Kangaroo Point in Brisbane were seen packing downing tools and equipment into the back of a truck on Monday morning.
A 12-storey development on Main Street for Area Property Group was earmarked for 124 apartment high-rise, though that fate now hangs in the balance along with 17 other projects.
Andrew Weatherly, managing partner at WTC Advisory, said calling on developers was a “unique approach” to the company’s challenges.
The company currently has 18 projects in Southeast Queensland. Pictured is an ongoing development on Cannes Avenue in the Gold Coast
“The alarm bells have rung and people may be hesitant to deal with it going forward, which will only exacerbate the problem,” Mr Weatherly said.
‘But from a developers point of view, if it wasn’t a substantial amount, it would make sense to support them up to a point because you would be delayed because clients would have to find another builder to complete the projects.
‘Whether this is enough remains to be seen.’
Founded in 2002 by Steve and Tracy Marais, Condev is licensed to complete projects totaling $240 million annually.
Ms Marais said the company was still solvent but needed assistance to find a solution, and was confident it would grow with the support of customers, employees and sub-contractors.
He said that till now all the contractors have been paid.
In an email to employees and customers, the company said that recent flooding across the region hampered the completion of projects and became ‘the straw that broke the camel’s back’ after reporting damage in 2021.
Melbourne-based builder ProBuild entered voluntary administration last month after millions fell into debt
Kondev currently has 18 projects in south-east Queensland, 14 of which are in the Gold Coast where the builder is based.
These include Cannes Waterfront in Surfers Paradise, The Brooks Residences in Varsity Lake, Natura and Breck Streets in Burley, and Jindy Apartments in Palm Beach.
Last month, ProBuild and several other construction businesses under the umbrella of WBHO Australia Group went into administration after parent company, WBHO South Africa, withdrew further financial support for them.
The group, which had 18 major commercial and public sector projects across the country, reportedly hemorrhaged in the form of a $120 million 264 high-quality residential apartment project on Brisbane’s Queen Street.
Kondev Projects in Southeastern Queensland
- Cannes Waterfront, Surfers Paradise
- Zoops Commercial Building, Ormeau
- Brooke Residences, University Lakes
- Natura, Burleigh
- Break St., Burleigh
- Jindi Apartments, Palm Beach
- 15 Ward St, Southport
- 41 Ward St, Southport
- Allure, Chevron Island
- St Hilda’s, Southport
- One Cannes, Surfers Paradise
- Alegria, Palm Beach
- Capital Court, Varsity Lake
- BMW, Southport
- Minnipey Quarter, Carina
- -Rivire, Kangaroo Point
- Stanford and Oxford, Dutton Park
- Shoreline Queens Beach, Scarborough