Even as building conditions pick up, the construction sector in Australia continues to be dogged by high rates of business failure and a shocking impact upon unsecured creditors such as subcontractors.

External administrators were appointed to no fewer than 764 companies within the building sector throughout Australia in the six months to December alone, ASIC data indicates. During 2013/14, ABS data shows that 52,945 operating businesses left the sector, implying the third worst ‘exit rate’ (15 per cent) of any sector…