Struggling construction industry loses another company to skyrocketing costs as business collapses owing millions – blaming their money woes on one particular material
- All State Construction Solutions forced to shut last month, owing $2million
- Liquidator said rising cost of materials and Covid pandemic led to its failure
A South Australian construction company has become the latest in the industry to go under, owing more than $2million to creditors.
All State Construction Solutions was forced to shut last month after its remaining 20 staff members were laid off with the company blaming its money woes on the skyrocketing cost of steel.
The company had worked on several major projects across the state including the Convention Centre and the State Library, and provided scaffolding and safety services for other construction and infrastructure projects.
Liquidator Nick Cooper from Oracle Insolvency Services was appointed to oversee the administration of the company that was set up in 2018.
All State Construction Solutions was forced to shut last month, after its remaining 20 staff members were laid off
Mr Cooper said the rising costs of materials, mostly steel, and the impact from the Covid pandemic had led to All State’s downfall.
‘Unfortunately, once again we’re seeing the impact of the rising cost of materials on a construction-related business. All State Construction Solutions Australia buckled under the pressure of skyrocketing steel prices,’ he told The Advertiser.
‘When Covid hit major construction projects dried up.
‘The business relied on JobKeeper payments but with the rising costs of materials and commercial work sporadic as the economy emerged from the pandemic, the business could not recover from the challenges.’
The company had worked on several major projects across the state including the Convention Centre and the State Library, and provided scaffolding and safety services for other construction and infrastructure projects
The liquidator said staff had been paid their wages and entitlements but some supplies and the Australian Taxation Office were still owed money.
The company was hit hard after it heavily invested in equipment for a major revamp of the The Playford Hotel, only for the project to be delayed by Covid.
All State had employed 40 staff at its busiest.