Contractor collapses expose industry ‘at breaking point’

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The collapse of local contractors Clough and Probuild is intensifying pressure on the construction industry.

Next, Oracle Platinum Homes and Home Innovation Builders have also fallen into administration over the past year.

Big collapses can also hurt the ability of industry to deliver projects, particularly where “the inability to pay creditors and subcontractors sets off a cycle of further business failures,” IA said. Ms Madew called on governments to take a “mature approach” to project governance and procurement, arguing that contractors were taking on unsustainable levels of risk as they rushed to bid for and complete projects.

Annual demand for concrete is running at 32 million to 44 million tonnes while yearly demand for steel is around 2.4 million to 3 million tonnes.Demand for road construction materials is expected to peak at $7.6 billion in 2023-24.

 

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