Interface Constructions Victoria, which was founded 35 years ago, went into administration this week following a number of credit inquiries.
The company, based in the Collingwood district of Melbourne, specialised in residential and commercial projects. It has previously built several childcare centres, schools and petrol stations around Victoria, as well as the popular Zonzo winery in the Yarra Valley.
锘緼dministrators Richard Lawrence and Richard Albarran from accountant Hall Chadwick were appointed to the company last Tuesday, according to local news channel 9News.com.au.
A virtual meeting is scheduled to take place on 锘縁riday 12th May between the creditors and the company.
锘縄nterface Constructions' collapse follows series of other construction company failures this year.
Melbourne-based Porter Davis Homes, one of Australia's largest house-builders, went into administration in March leaving more than 1,500 homes partly built.
In February,聽luxury New South Wales 锘縜partment builder EQ Constructions聽went into administration owing up to A$50m (拢27m).
Major Queensland building company LDC聽went into administration in January,聽following WA Housing Group聽in December 2022.
The current crisis has led to calls for more financial transparency in the industry as costs spiral and contractors struggle with fixed-price contracts.
Although all Australian states require building companies to hold a license to operate, industry observers claim that many of the insolvencies are the result of companies being allowed to continue trading while financially unviable.
Russ Stephens, co-founder of the Association of Professional Builders, said the problem is "a lack of financial education鈥esulting in incorrect financial statements being submitted to the licensing authority.
鈥淏uilding companies are being permitted to trade unprofitably for way too long rather than having their licenses revoked.鈥�
He added: 鈥淐ustomers and subcontractors need to be protected through greater visibility of a builder鈥檚 accounts which is why we鈥檝e been calling for builders鈥� accounts to be made a matter of public record.鈥�
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