Probuild going under?

Going, going, gooooone!



According to the AFR, they had a 47 storey Brisbane resi project on the go for CBus, I take it that my super may take a little hit with no home warranty insurance on this type of project.

 

I was only just looking at that building next to Customs House thinking how lovely it looked. Read tonight it’s $48 million in the red and it’s not even half complete based on my quick glance up while driving.

 

Saw on news that tradies are walking off the job owed hundreds of thousands. This shouldn't be allowed to happen.

 

We won some of the coating on this job a few weeks back. I took it off a competitor and gloated about it in our monthly report, most likley won’t get paid for it now so I think this one will be coming out of the database!


Probuild engage X, who then sub Y, who then sub Z, who then Sub.. and so on. Who coughs up? Fabricators, contractors, glaziers, metal suppliers, it’s a huge channel of people, thousands of people directly or indirectly that will now end up wearing the cost.

 

Absolutely, they should've Run alot sooner.

 

No running allowed on worksites due to OHS.

 

Do the contracts probuild sign with clients, are they "fixed" or do they have flexibility to move with the increases in labour and materials we have had over the last year or two?

 

Lot of small insurance work in progress too

 

How can a big company like that go bust? Like to know where the money went.

 

Interesting read from 2020 (disable javascript on your browser if you can't get through ...)
Probuild China takeover: Josh Frydenberg rejects $300m Chinese bid

 

It would not surprise me if more Tier 1 contractors get themselves into trouble over the next year or so. The cost of materials and labour has gone through the roof, and the margins in the construction industry are already stupidly low.

 

Remember when I said about a rumour of a big player going down???
But my lips are seal... at the time.

There is another big player also in the deep end. I won't be surprise if it sinks by end of this year.

 

From my understanding financing with a lot of these big guys is always pretty tight. They take on a lot of big projects to obviously bring the money in and the expectation that all is beautiful in the world. Financing is often dependent on project milestones.

With rising material costs, availability of goods and labor, things have probably blown out on many of the milestones, and expected costs, putting the project(s) behind. Financiers get nervous, and are hesitant to lend for the next stages. Start doing their own investigations.

Suppliers and contractors stop getting paid, other suppliers start to hear of other suppliers not getting paid, refuse to supply goods if they don't think they will get paid. They all start asking questions. So it's like a chain reaction bouncing around, then the whole thing explodes like a nuclear reaction.

Happens frequently, no matter what the size. The bigger guys just do it on a bigger scale than the smaller builders.

Others who would work with this day to day would know more..

 

It was the South African parent company which pulled the finances on the Australian operations.

 

Financial credit crunch. Cost of money is going up. Everyone is kinda scare and playing chicken little at the moment.

 

Bad management could play a part.

We got to look at who are the victims and who comes out unscathed. It seems to be the same old story.

 

Problem always is ,it's the last on the payment ladder who always end up with nothing ..

The small sole traders subbies of those people are the last too experience the domino effect,and at least there is a welfare back-up in Australia unlike other free market countries..

 

ya rumours are rife on the next big player, hearing it a lot