Another building company has collapsed, marking a grim start to 2023.
On Monday, Western Australian building firm Metro Homes WA Pty Ltd, which also trades as Hamlen Homes, collapsed into administration.
According to a notice lodged with the corporate regulator, ASIC, Clifford Rocke and Greg Prout of WA Insolvency Solutions have been appointed as administrators.
The Perth-based building firm has been a registered company since April 2013, according to documents.
The Hamlen Homes website and Facebook page is no longer active.
The West Australian reports that Hamlen Homes had seven builds under way and that projects had stalled for months, causing one customer to seek legal action.
Its offices have also reportedly been shut down.
Hamlen Homes had also secured a $42 million building gig as one of the developers on a residential development with townhouses and apartments.
The development, slated for East Victoria Park, had been approved, but building had not yet commenced.
It is unclear how many staff are at the company and affected by its collapse.
News.com.au has contacted the administrators for further comment.
The demise of Hamlen Homes comes at the same time that another building firm collapsed.
On Monday, news.com.au reported that major NSW apartment developer EQ Constructions had gone bust owing at least $40 to $50 million.
The construction industry has been struggling as many companies are facing financial ruin and unable to turn a profit because of current market rates.
In the past month, award-winning residential construction company Delco Building Group in Victoria went under owing $780,000 to 50 creditors, as well as Hamlen and EQ Constructions.
It also emerged in January that two more construction companies in Western Australia went under due to labour shortages and increasing construction costs.
A number of large firms entered into insolvency over the past year including Probuild, Condev Construction, Pivotal Homes, Waterford Homes, Privium, Home Innovation Builders and Norris Construction Group.
It was caused by a perfect storm of supply chain disruptions, skilled labour shortages, skyrocketing costs of materials and logistics, and extreme weather events.
alex.turner-cohen@news.com.au
– With Sarah Sharples
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