A Central Coast-based building giant has announced it has gone into voluntary administration.
STEVENS Construction cites "unprecedented industry challenges" for its demise, dating back to the onset of the COVID-19 pandemic.
"Unprecedented disruptions have led to skyrocketing building costs, reduced productivity, and critical shortages of materials and skilled labour," a company-issued statement said today (Monday, May 27).
"These factors have collectively placed immense pressure on Stevens Construction, making continued operations unsustainable."
Next steps
BRI Ferrier has been appointed as the voluntary administrators led by principals Jonathon Keenan, Andrew cummins and Peter Krejci.
A sale may be on the cards, as the administrators focus on identifying options to restructure the business or otherwise maximise returns for creditors.
"We are acutely aware of the distress this news will cause to all those involved-our valued staff, suppliers, subcontractors, design consultants, and principals," the statement said.
"We want to express our profound gratitude for your unwavering support and contributions over the past 18 years. Our priority now is to work closely with the appointed administrators to explore all possible avenues for a viable way forward."
Projects
Stevens Construction was behind builds including Salamander Bay Shopping Centre, Woolworths Gloucester, McDonald's Belmont, with big-name clients including Coles, the NSW State Government, Dan Murphy's and Shell.
Construction on all projects has been suspended, ten in total, as the administrators undertake their assessment with details of the first creditors meeting and a first creditors report to be issued soon.
"The administrators will work closely with the Stevens Construction team to investigate the situation and provide clarity to clients, employees, sub-contractors, and suppliers," the statement said.
Stevens Construction (NSW) Pty Ltd is a Tier 2 commercial construction business which has operated across NSW for nearly two decades, since 2006.
Building pressure
High interest rates, rising costs and tighter financing are putting pressure on builders and development projects in Newcastle and across Australia.
Bruce Billson, the Australian Small Business and Family Enterprise Ombudsman, says requests for help from small businesses concerned that they are owed money by businesses who are insolvent doubled during the last quarter of 2023, compared to the previous quarter. Three-quarters of those were from small businesses in the construction industry.
It is understood that the people behind Stevens Group were once the owners of Stevens Construction but they exited after an agreement (management by objectives) of the construction company about 18 years ago, and there is no current connection between the two.
