The directors of PBS Building have described the decision to call in administrators as “gut-wrenching”.
PBS officially placed its New South Wales, ACT and Queensland Construction businesses into voluntary administration today after it was reported yesterday that its worksites were closed down.
RSM Australia Partners Jonathon Colbran, Richard Stone and Mitchell Herrett have now been appointed joint administrators of five PBS construction companies.
“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,’’ 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,” 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.”
Creditors are owed a total of more than $25 million, according to RSM.
PBS said a perfect storm of fixed price contracts, record material costs, supply chain challenges, labour shortages and extreme weather events forced the administration.
“This has been a gut-wrenching decision that we know will impact many lives and livelihoods,” PBS directors said in a written statement.
“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.”
PBS blamed the “unprecedented combination” of challenges, which eventually proved insurmountable.
“We are the latest, but we won’t be the last construction group to buckle under the weight of a broken industry and way of doing business that needs urgent reform.”
Yesterday the directors informed more than 180 staff based across the states that the board could no longer afford to continue the business.
“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.
“We have had some very tough conversations – some of our clients expressed disbelief and shock. We have been receiving humbling messages of support and understanding at all levels, particularly from our longterm contractors, suppliers, and clients.
“The PBS Board of Directors is working closely and collaboratively with the Administrators and will continue to work tirelessly to make this process as smooth as possible and to maximise value for our creditors.”
PBS was founded as Prestige Building Services in 1989 in Canberra.
It went on to deliver a large section of the Sydney Olympic Village and open offices in Sydney and Brisbane.
PBS has delivered more than 7,500 residential dwellings and construction projects to the value of $3.6 billion since its inception.
