Builder goes under with debts of $1.8m

By ANNE GIBSON Property editor

Failed Auckland builder Project Works Construction owes $1.8 million to its creditors, says the first report issued on the company's failure.

The firm, which went into liquidation on May 28, cited various reasons for its problems.

These were:

* The general state of the construction industry.

* The difficulty in obtaining contracts with satisfactory margins relative to the inherent construction risks involved.

* The disproportionate time and costs involved in resolving disputes with developer clients and sub-trades, given the slim margins prevalent in the industry.

* The resultant cash flow difficulties.

As a result, Project Works Construction directors and shareholders Wayne Birchall and Jeremy Brown decided to put the firm into voluntary liquidation last month.

The report, which was issued by the company's liquidators and accountants, Jollands Callander, says Newmarket-based Project Works Construction was only formed on January 15, 1999.