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.