Gold Coast construction company Pivotal Homes, which has built more than 1,500 homes during its 15 years of operation, has been placed into liquidation.
Key points:
- Pivotal Homes was placed into liquidation on Thursday afternoon
- Its director says rising costs have made operations unviable
- The company employees 16 staff on the Gold Coast
“Unfortunately, the rising costs which are impacting many in the industry throughout Australia have made our operations unviable,” managing director Michael Irwin said on Thursday afternoon.
“We are absolutely devastated for our 16 Pivotal Homes employees and assure all creditors, contractors and subcontractors have been paid in full.”
Derek Cronin of Cronin Miller Litigation, which is acting on behalf of the company, said Pivotal had 103 contracts under construction and another 177 pending council approval.
Mr Cronin said increased trade costs, delays, the pandemic and recent weather events had affected the industry.
Chris Cook and James Robba of Worrells have been appointed as liquidators.
An industry-wide problem
Pivotal’s demise follows the collapses of construction companies Probuild and Condev earlier this year.
“These are all examples of what were very successful companies that are severely affected by not one event but the combination of several events all taking place,” Mr Cronin said.
Mr Cronin said it was reflective of the state of the industry.
“It’s really going to affect clients of builders, home owners and would-be home owners and the construction industry generally.
“The Gold Coast very heavily relies on this industry, so I think we need to take a good, hard look at what solutions exist moving forward.”
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