Condev Construction to enter liquidation in another major industry collapse

Condev has collapsed in Australia after failing to secure a huge grant. Photo / Google Maps

Australian construction firm, Condev will go into liquidation after failing to secure a reported bid for $25 million from developers.

The Gold Coast-based builder announced Tuesday a liquidator was being sought to take over its affairs.

Last month, construction giant Probuild was placed into administration citing similar issues with rising business costs.

Condev founders Steve and Tracey Marais met some of Australia's biggest developers this to ask for assistance, but were unsuccessful, the Australian reported.

They said yesterday they were "absolutely devastated for the Condev family of employees, our tradespeople and our affiliates".

A lawyer for the couple explained the decision was based on "projections dictated by increasingly challenging market conditions including the exponential rise in material costs".

"This has been extremely stressful for Steve and Tracy who are highly regarded in the industry and the Gold Coast community as tier one corporate citizens," they said.

In a heartfelt email the couple told staff not to come in to work today.

"It is with the heaviest heart that we advise that we have not been able to achieve the outcome from [Monday's] meeting with developers that we'd hoped and the decision to proceed to the liquidation of Condev Construction is now a matter of course," they said.

They referenced the global pandemic and materials price hikes as contributing to putting them out of business.

One subcontractor told the Australian the company had tried to do the right thing and been transparent with their issues.

"Obviously they owe us money and it's not ideal but they didn't do this on purpose. They've just gone in too keen, underpriced on some jobs and it hasn't worked out," they said.

"We need a quick resolution so other builders can take over the jobs. The sooner life gets back to normal, the better."

They added, "it could be the tip of the iceberg as far as the way the industry is going".

Workers were seen packing up their tools on Queensland worksites on Monday afternoon as rumours of the company's fate circulated.

The company specialised in a range of projects, primarily in Queensland, from multi-unit dwellings to warehouses.

It is also is reported to have been contracted to build 18 new projects in partnership with the developers it met on Monday, valued at $1 billion.

They include the Cannes Waterfront in Surfers Paradise, The Brookes Residences in Varsity Lakes, Natura and Brake St in Burleigh, and the Jindi Apartments in Palm Beach.

However, the pipeline was disrupted by skyrocketing construction costs, which rose 25 per cent in the past 18 months amid the impact of the Covid-19 pandemic and recent flooding.

Another subcontractor told the Australian he accepted that he would money Condev owed him.

"They've always been very good to all the subcontractors and always paid exactly on time," he said.

"There's never been an inkling of them not doing the right thing. I can only speak highly of them."