Interface Constructions Victoria, which was founded 35 years ago, went into administration this week following a number of credit inquiries.
The company, based in the Collingwood district of Melbourne, specialised in residential and commercial projects. It has previously built several childcare centres, schools and petrol stations around Victoria, as well as the popular Zonzo winery in the Yarra Valley.
Administrators Richard Lawrence and Richard Albarran from accountant Hall Chadwick were appointed to the company last Tuesday, according to local news channel 9News.com.au.
A virtual meeting is scheduled to take place on Friday 12th May between the creditors and the company.
Interface Constructions' collapse follows series of other construction company failures this year.
Melbourne-based Porter Davis Homes, one of Australia's largest house-builders, went into administration in March leaving more than 1,500 homes partly built.
In February, luxury New South Wales apartment builder EQ Constructions went into administration owing up to A$50m (£27m).
Major Queensland building company LDC went into administration in January, following WA Housing Group in December 2022.
The current crisis has led to calls for more financial transparency in the industry as costs spiral and contractors struggle with fixed-price contracts.
Although all Australian states require building companies to hold a license to operate, industry observers claim that many of the insolvencies are the result of companies being allowed to continue trading while financially unviable.
Russ Stephens, co-founder of the Association of Professional Builders, said the problem is "a lack of financial education…resulting in incorrect financial statements being submitted to the licensing authority.
“Building companies are being permitted to trade unprofitably for way too long rather than having their licenses revoked.”
He added: “Customers and subcontractors need to be protected through greater visibility of a builder’s accounts which is why we’ve been calling for builders’ accounts to be made a matter of public record.”
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