Over the past few years, Australia's construction sector has
been facing unprecedented pressure, and by mid-2025, the effects
have become painfully clear. Dozens of major construction companies
across Queensland and nationally have gone under, leaving behind
unfinished projects, unpaid contractors, and thousands of affected
workers.
At JCL Law Partners, we work closely with businesses facing
financial distress, including those in the construction sector.
While every collapse has its own circumstances, there are some
consistent factors driving the crisis across the industry.
Tight margins and fixed-price contracts
One of the biggest challenges construction companies face is the
widespread use of fixed-price contracts. These agreements lock in
the cost of a project before it begins. While they offer certainty
to clients, they leave builders with little room to absorb rising
costs – something that has become all too common in recent
years.
