Work has stopped on more than 100 home building sites after a Perth construction company went bust, leaving 38 staff unemployed and about 350 unsecured creditors owed about $16 million.

BuiltonCorp Pty Ltd, which trades under brands including Platinum Homes, Aspireon Homes and Multi Living by Design, ceased trading and terminated its workforce last week.

Dino Travaglini and Jeremy Nipps of chartered accounting firm Cor Cordis have since been appointed voluntary administrators and say sub-contractors and suppliers are among the unsecured creditors.

Mr Travaglini said it was too early to know whether they would see a return.

“We are in the process of reviewing all existing housing contracts and to see how we can best assist the owners in completion of their houses,” he said.

“I recognise this is a distressing time for house owners and creditors, and we are working as quickly as possible to clarify their position.”

One of the creditors, Anstey Cabinets owner Dennis te Wierik, told ABC radio BuiltonCorp’s collapse would slash his company’s workload by 50 to 70 per cent.

“Last week, I already had to let six people go,” he said.

“We’re probably one of the largest contractors on the book.

“Potentially, if I don’t survive this, it will affect my other customers as well.

“We’re going to get through as long as we find new work.”

WA Building Commissioner Peter Gow said it was believed most customers would be covered by home indemnity insurance with QBE.

“There is always a possibility the administrators may be in a position to finish off some contracts, particularly those that are close to completion,” Mr Gow told the broadcaster.

  • Whilst business is business and some company collapses are inevitable, this really is awful for home owners, staf and suppliers. Obviously one must really feel for those affected.

    Also, whilst many will no doubt be angry, one must feel for the owners as well., It is a sad reality of life that some businesses fail despite the best intentions of its owners. When that happens, it no doubt brings a lot of financial and personal stress upon the owner and his or her family.

  • The 'Construction' industry is responsible for 50% of all insolvencies. Yes, simply staggering! The phoenix option is widely used – we will wait and see on this one. As for those impacted directly – 350 creditors, 100 owners and all the flow on to the employees, their families, and the wider community. All this 'legal'. And consider that none of these just suddenly happen overnight. So we ask: "How does it continue, impacting 350,000 small contractors in construction, their staff and families, etc. every year?" It is a mushrooming business, more every year and many carefully planned. Across the country, in total we have 750,000 owners who suffer financial detriment every year, not all because of insolvencies – but far too many are for this reason. As for Peter Gow's comment that owners will get to claim 'insurance', many defects will be denied, and most if not all will never get their genuine claims paid out. Deny and delay – this is the insurance way! As for owners where there is no 'insolvency' to trigger a claim, they all get nothing. This is fraudulent and supposed to be criminal – but no-one will prosecute. So the gravy train continues – all Government approved!

Allegion – 300 x 250 (expire Aug 30 2018)