The number of construction enterprises that have failed due to rising material costs, labor shortages, and interruptions continues to grow.
Elderton Homes, situated in New South Wales, stated on Monday that administrators had been appointed to oversee its activities moving forward.
The boutique builder attributed the ‘difficult decision’ to a variety of issues, including the bushfires and floods, the Covid epidemic, and the economic crisis.
Elderton’s management said in a statement, “The Construction Industry has also been affected by unprecedented rainfall, major price rises on building supplies, supply chain issues, and labor shortages.”
Elderton Homes stated on Monday that it has been placed into administration.
“Elderton Houses is delighted to have built thousands of homes for clients in Greater Sydney, Central Coast, and Illawarra, and to have supported them in constructing their first home, investment properties, and dream homes.
We would like to thank our incredible internal team members, suppliers, and subcontractors for their assistance over the past 13 years.
The company is the most recent addition to a lengthy list of construction firms that have failed in the past year, including major players such as ProBuild and Condev Constructions as well as smaller firms such as Hotondo Homes Hobart, New Sensation Homes, and Pindan Group.
Just last week, the Queensland-based construction company Lanskey Constructions declared bankruptcy, following in the footsteps of other Sunshine State companies Oracle Platinum Homes and Besse Construction.
Hundreds of employees have lost their jobs, thousands of homes remain unfinished, and consumers and subcontractors are owed tens of millions.
»Elderton Homes declares bankruptcy as the building industry struggles«