The fall of the construction empire

For some time now there has been speculation as to the ever-looming collapse of the building and construction industry in Australia. At the start of the COVID-19 Pandemic in 2020, it was contemplated that the builders would simply not be able to trade and there would be a huge surge in insolvency in the building and construction industry. That hasn't happened as yet, for a number of reasons, but especially because of government payments that helped insulate builders and subcontractors from insolvency.

However, two years on and the financial pressure on participants in the building and construction industry is starting to take its toll. There has been a string of collapses of major stakeholders in the industry, including Privium in late 2021 who left more than 2000 homeowners with unfinished homes and close to $43 million in unsecured creditors and BA Murphy in late 2021 who again owed more than $11 million to more than 500 creditors. The lasted in the string of