A Unanderra business has been left $130,000 out of pocket after Canberra-based PBS Building went into voluntary administration yesterday.
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SPK Plumbing and Civil first sense that something was up when their January payment for work on the RISE on Gipps project was not received.
The eight-storey apartment block was being built by PBS Building on behalf of Rise property group and was originally scheduled to be finished in January this year. SPK Plumbing and Civil director Jessica Kelley said this was not the first time they had been caught up in the crisis affecting building firms.
"This is the third time it's happened. It's just this industry, it's crazy," she said.
Ms Kelley said the business is owed $130,000 for work already completed, but was not confident that they would see a cent.
"When Matrix Building Co. went under we got absolutely nothing so I'm going to try and put a claim in with the liquidator," Ms Kelley said. "I expect we will get absolutely zero again."
At PBS Building's other site in the Illawarra, an Anglicare affordable housing project in Dapto, Timberi Avenue was unusually quiet.
Residents were used to trucks lumbering through their residential street to drop off building supplies and pick up waste, and street parking was frequently jammed full of contractors' vehicles.
Since last week, however, suburban peace had returned, and on Wednesday, the loudest sound came from a lawnmower.
Resident Amanda Evans said activity had died down in the past month.
"I haven't seen any trucks for ages, they used to get trucks here several times a day and they'd be lined up waiting to come through," she said.
In a statement, PBS directors said 180 staff were directly affected, but it is not known what impacts the latest building industry collapse will have on the sector.
"We are the latest, but we won't be the last construction group to buckle under the weight of a broken industry and way of doing business that needs urgent reform," the directors wrote in a statement.
Administrators RSM Australia said initial investigations revealed PBS owed over 1000 creditors more than $25 million.
''These are preliminary figures and may change following more detailed investigations over the coming weeks," RSM Australia partner Jonathon Colbran said.
It is unclear what the news means for buyers who bought off the plan at Gipps Street. Managing director of Rise Property Group Daniel Kostovski was contacted for comment but did not respond prior to publication.
Do you know more? Contact Connor at connor.pearce@austcommunitymedia.com.au
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