Canberra-based PBS Building has entered voluntary administration, halting work across 80 residential and commercial projects.
Documents were lodged just after 2.30pm confirming PBS Building Pty Ltd and four related companies had appointed an administrator.
RSM Australia partners Jonathon Colbran, Richard Stone and Mitchell Herrett were named as the administrators for five related companies.
These include PBS Building Pty Limited, PBS Building (NSW) Pty Ltd, PBS Building (QLD) Pty Ltd, PBS Building (ACT) Pty Ltd and PBS Management Company Pty Ltd.
In a joint statement, the PBS board of directors and company founder Ian Carter said it was a "gut-wrenching decision that we know will impact many lives and livelihoods".
"However, after months of intense efforts behind the scenes, in the end it was the only responsible course of action available.
"In relation to our current projects, we secured, not abandoned, these sites with the express purpose of not incurring any further expenses.
"We took this step to ensure that we could negotiate better outcomes with clients for the ultimate benefit of creditors.
The statement went on to say despite more than 30 years of experience, the company faced an "insurmountable challenge" due to material costs, fixed-price contracts, labour and material shortages and significant weather events.
The statement said 180 staff across the ACT, NSW and Queensland were informed of the company's situation on Monday.
"Ensuring our employees received their entitlements in full, has been a priority for the board. As of 6 March 2023, all employee entitlements have been fully paid out," the statement read.
In a statement, RSM Australia partner Jonathon Colbran said 80 projects were impacted.
"Between them, the five companies, have 80 residential and commercial projects in various stages of construction, from the early design phase through to various stages of construction,'' Mr Colbran said.
"All work on these sites ceased immediately prior to the appointment of the administrators and it is not clear at this stage whether works will recommence."
It comes as PBS Building, which operates in the ACT, NSW and Queensland, shut down its job sites on Friday afternoon.
Contractors and subcontractors working at the redevelopment of the Belconnen Markets were told to collect their belongings on Friday afternoon.
One subcontractor told The Canberra Times on Monday, PBS Building owed his business outstanding payments "in the hundreds of thousands" of dollars.
Peter and Ian Carter founded Prestige Building Services in Canberra in 1989.
Ian Carter and Adam Moore are currently listed as directors of PBS Building.
On Tuesday, Canberra developer Doma confirmed work had also stopped on its Woden project, The Melrose, which was being built by PBS Building.
"We became aware of the situation late Friday afternoon and we are still assessing the safety and auditing the exact project status," Mr Edgar said.
Mr Edgar said a different builder would be engaged in due course.
"In due course we will engage a different builder to complete the works and will then sit down with the new builder and have a discussion with subcontractors and suppliers that were engaged by PBS on the Melrose project to find a way forward," he said.
More to come.
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