Adelaide builder Qattro has been placed into voluntary administration, with the company’s boss blaming the COVID-19 pandemic for its demise.
Qattro’s managing director Bradley Jansen said he had “exhausted all options” to try to help the company recover post-pandemic, only for supply chain issues and labour shortages to hamper his efforts.
“I have made significant changes to the company in the post-COVID years, such as downsizing both operations and our offices,” Jansen said.
Watch the latest news and stream for free on 7plus >>
“(But) there is too much cash stuck on near-completed projects to meet the immediate obligations of the company.
“New projects secured are profitable, however, the existing projects with underwater fixed price contracts are still weighing too heavily on the ability to get to the other side.”
Qattro has 200 incomplete homes to finish. Credit: Imagine at Noarlunga
At least three building companies in South Australia have collapsed so far this year, including Felmeri Homes and 7 Star Construction.
Qattro, based in Eastwood, has been operating for the last 15 years.
Jansen said he put all his personal assets into the company, but it was faced with a $7.5 million cost increase that couldn’t be absorbed.
About 200 customers have been left with incomplete homes, valued at $110 million, according to Qattro’s liquidator Duncan Powell.
These will now be the focus of the company’s operations, Jansen said.
“The reality is that selling something under contract for $1.00 that costs $1.20 to produce can only go on for so long,” he said.
“I have tried my best to protect the staff and suppliers.
“I know the closure of the business will have a significant impact on its many long-term employees, clients, contractors and various local sporting clubs and charities that Qattro has strongly supported over the last 15 years … for this, I apologise.”
Builders across Australia who’ve been forced into administration recently have blamed COVID-19, supply and labour issues for their collapse.
Jensen said the builders watched the problems in the industry play out for three years, with no end in sight.
“It is a deeply troubling time for the sector when a shortage of housing supply is in lock step with supply side degradation,” he said.
Man busted for drunken scissor lift joyride through CBD
Two men stabbed as online marketplace sale turns brutal
If you’d like to view this content, please adjust your Cookie Settings.