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Rising cost of materials and fixed-price contracts likely cause of failed modular builder.
Operating from the former Holden manufacturing plant in Adelaide, modular builder Oneconstruct has collapsed with liquidator Dominic Cantone from Oracle Insolvency Services appointed to wind up the company on October 6.
The company moved to Elizabeth, an outer northern suburb of Adelaide last year, and in recent years completed new modular classrooms for Mitcham Girls High School and Prospect Primary School, as well as building houses for the SA Housing Authority.
Liquidator Dominic Cantone, said the business mostly relied on subcontractors but two full-time staff were made redundant as a result of the company’s closure.
“This is a very unfortunate situation,” he said.
“A major factor in the collapse of the company was the rising cost of materials due to global supply chain issues. With Oneconstruct completing jobs on set price contracts, the company had to absorb the increasing costs.
“Unfortunately, this was no longer financially viable for the business.”
Mr Cantone said investigations into Oneconstruct’s collapse were ongoing, and debts to subcontractors and suppliers were expected to exceed half a million dollars.
“We have seen the pressure on the building industry with increased freight costs wreaking havoc on global supply chains. A lack of materials has led to construction delays and rising prices. If a builder is unable to pass that higher cost onto the customer because the contract was signed at a fixed price, it can put enormous strain on a business.
“It is vital that any construction business that’s in trouble seeks professional help before it’s too late.”
Oneconstruct was operated by directors Vince Cosmai and Dino Gallina.
