“The rumours suggest that Metricon has been cancelling customer contracts due to price escalations, or an inability to build due to product shortages,” he says.
“These rumours are false and baseless. Metricon is in a very strong position to complete all work it has, and is continuing to accept and support a high number of new customer builds.
“Rarely would Metricon wade into such innuendo. In this instance, however, given the current market conditions due to Covid and some competitors going into liquidation or maybe illegally increasing prices, we feel we must quash these rumours.
“Metricon is not cancelling contracts, and is in a very strong position to complete all works now and in the future.”
Firms falling over
But the cracks are showing elsewhere, with 25 per cent of all insolvencies nationally happening in the construction sector.
Last week, Privium and other companies in the group were placed into voluntary administration, with debts of more than $28 million. The firm operates in Queensland, NSW and Victoria.
Named the 11th largest builder in Queensland by the HIA this year after completing more than 600 projects worth $180 million, the firm is blaming surging construction costs.
Melbourne’s ABD Group also appears to be on the verge of collapse, ceasing work on three high-profile contracts, with two contracts torn up. The collapse would leave between $50 million and $80 million in outstanding debt, sources say.
The fall-out is hitting construction businesses too. Safa Scaffolding, on the Gold Coast, went into voluntary administration in June.
