Queensland building firm Condev faces collapse with $1billion in projects and 125 jobs up in the air

Queensland construction giant Condev is facing collapse, placing $1billion in projects and 125 jobs up in the air as the company is rocked by labour shortages, floods and soaring material costs.

The huge building firm met with developers on Monday afternoon in a last-ditch bid to salvage the company, which has projects across the state’s southeast worth hundreds of millions of dollars. 

Discussions are underway to create a rescue plan to prevent Condev – one of the biggest construction companies in Queensland – from ruin, with developers assessing how projects can be finished without sparking further financial loss. 

It comes just weeks after Probuild was placed into voluntary administration after falling into tens of millions of dollars of debt, leaving hundreds unemployed and dozens of projects unfinished nationwide.

The Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) described Condev as a ‘collapse waiting to happen’ after being smashed by a ‘perfect storm’ of issues. 

CFMEU state secretary Michael Ravbar said a ‘combination of underbidding on jobs, poor project management and quality control’, led to the company’s financial woes, the Courier Mail reports. 

Subcontractors were spotted downing tools and packing up equipment into the back of trucks at the company’s Rivière project at Brisbane’s Kangaroo Point on Monday morning. 

The 12-storey development on Main Street for Aria Property Group was set to be a 124 apartment high-rise, although it’s fate now hangs in the balance along with 17 other projects. 

WTC Advisory managing partner Andrew Weatherley said calling on developers was a ‘unique approach’ to the company’s challenges.

‘The alarm bells have rung and they might find people hesitant to deal with them going forward which would compound the problem,’ Mr Weatherly said.

‘But from a developers point of view, if it was not a substantial amount of money it would make sense to support them to a point because of the delays that you’d suffer because the clients have to find another builder to complete the projects.

‘Whether that is sufficient enough remains to be seen.’

Condev, founded by Steve and Tracy Marais in 2002, is licensed to complete a total of $240million worth of projects annually.  

Ms Marais said the company was still solvent but needs assistance to find a resolution, and was confident it would pull through with the support of clients, staff and subcontractors. 

She said all subcontractors have been paid to date. 

In an email to staff and clients, the company said the recent flooding across the region hindered the completion of projects and became the ‘straw that broke the camel’s back’ after reporting losses in 2021. 

Condev currently has 18 projects across southeast Queensland, with 14 in the Gold Coast where the builder is based.

They include the Cannes Waterfront in Surfers Paradise, The Brookes Residences in Varsity Lakes, Natura and Brake Street both in Burleigh, and the Jindi Apartments in Palm Beach.

Last month,  ProBuild and several other construction businesses under the WBHO Australia Group umbrella went into administration after the parent company, WBHO South Africa, withdrew further financial support for them.

The group, which had 18 major commercial and public sector projects around the country, had reportedly haemorrhaged as much as $120million 264 high-quality residential apartments project on Brisbane’s Queen Street.