RetireAustralia says it is committed to completing the 42 independent living apartments at Tarragal Glen Retirement Village at Erina despite the building company entering into voluntary administration.
Stevens Construction (NSW) Pty Ltd, a major Central Coast company, announced on May 27 it had entered voluntary administration after almost two decades in the construction industry.
Described as a Tier 2 building business, Stevens Construction had been operating for 18 years, with projects including Central Coast landmarks such as Bonython Tower and Ravello luxury apartments, Central Coast Grammar School’s Performing Arts Centre, Mingara One Aquatic Centre, Element Building Erina, The Rise Apartments at Wood Glen Retirement Village, Glengara Aged Care Facility, and Aurrum Aged Care facility at Erina.
Restructuring and insolvency group BRI Ferrier has been appointed as the voluntary administrator.
A statement from Stevens Construction said that Principals Jonathon Keenan, Andrew Cummins, and Peter Krejci would lead the process, conducting an urgent assessment of the company’s affairs.
“The primary focus will be to identify options to restructure the business or maximise returns to creditors, possibly through a sale,” the statement said.
“Construction on all projects has been temporarily suspended as the administrators undertake their assessment.
“The construction industry has faced significant challenges since the onset of the COVID-19 pandemic.
“Unprecedented disruptions have led to skyrocketing building costs, reduced productivity, and critical shortages of materials and skilled labour,” the statement said.
“These factors have collectively placed immense pressure on Stevens Construction, making continued operations unsustainable.”
The Master Builders Association of NSW awarded Stevens Construction its Commercial Builder of the Year Award in 2019 and the company has been RetireAustralia‘s builder of choice in NSW.
It constructed the 58 units for The Rise Apartments at Wood Glen across two, five-storey buildings in Erina and the 70-bed assisted living facility and clubhouse within the grounds of the existing Glengara retirement village in Tumbi Umbi.
The structure of the 42 independent living apartments at Tarragal Glen Retirement Village is complete and ready for fit out.
A company spokesperson for RetireAustralia said they were committed to completing the project and were in discussions with the administrator, subcontractors and other key stakeholders to determine the next steps.
“Voluntary administration is an unexpected hurdle, not an end to the project,” the spokesperson said.
Sue Murray
When will laws be changed to protect consumers, subcontractors and suppliers for companies becoming insolvent?
It appears that company directors relocate funds, either through family members, subsidiary companies or off shore assets.
As a project manager for over 20 years, red flags were raised at $1000 over budget
I am perplexed at how Construction companies are trading with enormous debt. The underlying systematic issues are not being addressed, nor are company directors and CEO’s are being held accountable.
Many of these directors often are involved in new companies shortly after.
There is a complete systematic breakdown, that is often exploited with the investors, employees and subcontractors taking the reprocussion