Advice for tradies as more building firms tipped to go bust

Subcontractors and suppliers are being urged to look out for “early warning signs” amid a spate of construction company collapses.

Duncan Murray 3 min read March 18, 2022 - 8:43PM NCA NewsWire

Subcontractors and suppliers are being told to prepare for further shocks following the collapse of industry giants Probuild and Condev.

As Condev co-founder Tracy Marais tearfully bid her business farewell this week, she warned other companies would soon follow.

“I don’t think potentially, I think for sure,” Ms Marais said.

Experts have described a “perfect storm” of rising materials costs, Covid-19 delays and disruptions to supply and labour markets putting pressure on the industry.

However, they say there are early warning signs to look out for that could help signal which companies will be next.

Founder of representative group Subbies United, John Goddard, said in the current environment subcontractors were playing “Russian roulette”.

“In the building industry you can be working for the biggest one that’s been around for 20 years, like Condev, and within days they’re gone,” Mr Goddard said.

“You’ve just got to be so observant.”

Mr Goddard said to read contracts carefully – with legal advice if necessary – and be willing to negotiate terms.

“Read your contracts, understand them, get rid of clauses you don’t like, and if they still won’t sign it, don’t go with them. It’s not worth the hassle,” he said.

However, even under contract, “that’s not going to save you if the builder’s got no money,” he added.

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