Another major builder has joined the growing list of construction companies that have collapsed amid soaring material costs, labour shortages and disruptions.
Elderton Homes, based in NSW, announced on Monday it had appointed administrators to manage its operations going forward.
The boutique builder said the ‘difficult decision was the result of a number of factors’ citing the bushfires and floods, Covid pandemic and economic downturn.
‘The construction industry has been subject to record levels of rainfall, substantial price increases on building materials, supply chain challenges and labour shortages,’ Elderton’s management said in a statement.
‘Elderton Homes is proud to have built thousands of homes for customers around Greater Sydney, Central Coast, and Illawarra and have assisted our clients build their first home, investment properties, and dream homes.
‘We want to thank our amazing internal team members, suppliers and subcontractors who have helped us on our journey over the past 13 years.’
The company is the latest in a long list of construction companies which have folded in the last 12 months including big players like ProBuild and Condev Constructions along with smaller firms such as Hotondo Homes Hobart, New Sensation Homes and Pindan Group.
Just last week Queensland-based builder Lanskey Constructions went into liquidation, following fellow Sunshine State firms Oracle Platinum Homes and Besse Construction in August.
The collapses across the industry have left hundreds of staff without jobs, thousands of homes uncompleted and customers and subcontractors owed tens of millions of dollars.
