PBS Builders voluntary administration to impact 80 projects in the ACT, NSW and Queensland

The 34-year-old construction business called in administrators for five of its companies on Tuesday afternoon.

The company is estimated to owe more than $25 million to more than 1000 creditors.

All PBS Building employees were made redundant on Monday, administrators confirmed.

Ian Carter, one of the company's directors and founders, said in a statement the "gut-wrenching decision" came after months of working with clients.

PBS Building's construction sites across the ACT, NSW and Queensland were shut down on Friday afternoon as word circulated of the company's financial troubles.

Mr Carter and the PBS board of directors issued a joint statement on Tuesday confirming the business had entered voluntary administration.

READ MORE: More sites impacted by PBS Building fallout

The statement said 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.

"This has been a gut-wrenching decision that we know will impact many lives and livelihoods," the statement said.

"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 group said it informed its more than 180 staff on Monday that it "could no longer afford to continue the business".

RSM Australia partners Jonathon Colbran, Richard Stone and Mitchell Herrett were appointed as 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 statement, Mr Colbran said the voluntary administration impacted 80 residential and commercial projects.

"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," he said.

"If works do not recommence, the operations of the PBS construction companies will progressively be shut down and sites will be handed over to customers."

Mr Colbran said initial estimates revealed more than $25 million was owed to creditors.

"RSM's initial investigations of the financial statements and records of the PBS construction companies have identified more than 1000 secured and unsecured creditors," he said.

"These creditors are owed a total of more than $25 million.

''These are preliminary figures and may change following more detailed investigations over the coming weeks.''

Mr Colbran also confirmed all PBS Building employees were made redundant on March 6, prior to the appointment of the administrators.

''Key staff will be asked to remain available to assist the administrators generally," he said.

"This will include engaging with customers and creditors and facilitating a handover of remaining contracts and works to customers if construction does not recommence."

Mr Colbran said external administration process would take some time due to the size and complexity of PBS Building's operations.

In the ACT, one of PBS Building's major projects was the redevelopment of the Belconnen Markets.

Subcontractors working at the Belconnen location were told to collect their belongings on Friday afternoon, before the site was shut down.

Work has stopped on Doma's Woden project, The Melrose, which was being built by PBS Building.

Doma general manager, development Gavin Edgar said the group became aware of the situation late Friday afternoon and has since secured the site.

PBS Building was also engaged by Stockland as one of the builders at The Parks, Red Hill.

Brothers 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 Pty Ltd, based in Deakin, ACT.

Do you know more? Contact brittney.levinson@canberratimes.com.au

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