Canberra's construction industry is in one of its worst eras "ever", according to tradies, and projections for this financial year show little improvement.
Lifestyle Home Management and Imagine Building Concepts have been the most recent to go, in October.
Project Coordination, a family-run business, entered voluntary administration in March 2024 and was wound up in September.
Rork Projects collapsed in March 2024, leaving dozens of ACT jobs in limbo.
In February, Cubitt's Granny Flats and Home Extensions went into voluntary administration.
The creditors of the collapsed PBS Building business voted to wind up four of the five companies in administration in September last year.
Insolvencies across all industries have been trending up since the end of COVID restrictions and the Australian Restructuring Insolvency and Turnaround Association predicts they are likely to worsen in the 2024-25 financial year.
The association's chief executive, John Winter, previously told The Canberra Times the construction industry had taken a "disproportionate hit" because of the precarious nature of the industry.
Last financial year, at least 1913 businesses in the construction industry entered external administration nationally, according to data from Australian Securities and Investments Commission.
Why are builders going bust?
Fixed pricing, long-running contracts because of construction delays and rising material costs mean many companies are running jobs with limited profit margins, or at a loss.
Experts say these elements create the perfect storm for small companies in particular, who struggle to keep up with soaring expenses.
RSM Australia partner Jonathon Colbran, who has led a number of high-profile builder administrations in Canberra, previously said projects were often quoted long before work started.
"There can be a myriad of factors beyond the builder's control that can impact the project and can cause delays. Those delays can cost money and, ultimately, often borne by the builder," he said.
But it is not just the builders taking a hit; tradespeople have told The Canberra Times they are owed tens of hundreds - and in some cases, thousands - following the external administration of Imagine Building in early October.
Subbies 'buying' work
The Master Plumbers ACT chief executive, Shane Martin, said sub-contractors were caught in a "power imbalance" given they relied on payment from a builder for work to be completed.
Sub-contractors were only covered in occasions where they took out insurance on a job prior to builders going into administration.
But sub-contractors told The Canberra Times the unpredictable nature of insolvency meant they were often caught out with very limited margins.
"The only signs we get are if [builders] are late on paying us or if you hear rumours," a tradesperson contracted to an Imagine Building site said.
He had worked on jobs for two companies who went into voluntary redundancy, both with little warning.
Another business owner who was employed to work on one of Imagine's projects said the industry's payment structure was contrary to most others.
"If you go to the mechanics, before you get your car back, you pay," he said. "If you go to the grocery store to get food, you pay for it."
The owner said many sub-contractors were "buying" work by dropping their prices to levels builders could afford.
"For many people, it is by far the hardest time in the industry ever," he said. "One missed payment, one defect, is enough to send people into a spiral."
He said it was not uncommon to wait more than one year for a payment in the ACT's current construction climate.
Mr Martin wanted to see a trust account established for sub-contractors to ensure they were paid out for all work.
The Master Builders ACT chief executive, Anna Neelagama, said the ACT government should enforce a business support package delivered by government that is aimed at small and family-owned businesses.
"This may include financial and cashflow management advice and support, and specific development programs for family-owned builders to help them navigate the challenges of operating a construction business," she said.
