Major Adelaide home builder Qattro has gone under, putting about 200 housing projects in doubt.
Liquidators Chris Powell and Nick Gyss, from Duncan Powell, said the company owes more than $4.5m to unsecured creditors, and has more than 200 projects worth more than $110m either in pre-construction, or in the middle of being built.
“Qattro Built has faced increasingly challenging operating conditions that have affected the entire industry and we have significant experience in supporting construction businesses in similar circumstances,” Mr Powell said in a statement.
“We will work closely with the management team and the various developers and owners to mitigate ongoing losses and exposures for all stakeholders and facilitate the orderly transition and completion of the projects.’’
Qattro director Bradley Jansen, in a statement on Tuesday, said it was a difficult decision to call in liquidators, and they fought hard despite massive cost increases.
“I am devastated to make this decision after three exceedingly difficult years of efforts trying to recover the post-Covid financial sustainability of the company,’’ Mr Jansen said.
“The reality is ongoing supply-chain and labour shortages mean that there is too much cash stuck on near-completed projects to meet the immediate obligations of the company.
“New projects secured are profitable, however the existing projects with underwater fixed price contracts are still weighing too heavily on the ability to get to the other side.
“The reality is that selling something under contract for $1.00 that costs $1.20 to produce can only go on for so long. Unfortunately, the industry has watched this unfold over the past three years and continues to, without knowing when it will subside.’’
He acknowledged the “significant impact” this will have on employees, clients, and contractors, and apologised.
Qattro was building various stages at the Cedar Woods Fletcher Slip Development and Dock 1 Development for Kite Constructions, and was involved in a number of smaller projects in Underdale, Torrens Park, and Lightsview.
Qattro was established in 2008, and had about 25 employees.
It follows the collapse of two Western Australian builders, Royal Construction and Design, and Western Luxury Homes within days of each other in August.
Liquidators Duncan Powell can be contacted on (08) 8223 6322.
Originally published as Adelaide builder Qattro goes under, about 200 homes in doubt