The Victorian government may extend a hand to help national building firm Probuild, as the company fights for survival and administrators takeover.
A major building firm that employs more than 1000 workers across Australia, Probuild was placed into administration by parent company Wilson Bayly Holmes-Ovcon Ltd on Wednesday evening.
The firm, which is responsible for building much of Sydney and Melbourne's skylines, says it is pursuing "several options" to raise the capital necessary for it to continue, as Deloitte is appointed administrator.
"We are caught up in a set of circumstances not of our making," a Probuild spokeswoman said on Thursday.
"We are working closely with the administrator on a number of plans to protect our clients, subcontractors and employees."
Victorian Premier Daniel Andrews has flagged that his government is open to providing Probuild with support.
"All of us should want that business to succeed," he said on Thursday.
"If there's anything we can do as part of that process - noting that it's a for-profit, private company - we are always happy to try and provide support and that can take many different forms."
Two other businesses under WBHO Australia - Monaco Hickey and WBHO Infrastructure - have also been placed into administration.
Deloitte administrator Sal Algeri said immediate focus will be on assessing each business' finances and working to stabilise projects "where possible".
"We will assess options to preserve value, and engage closely with creditor groups and other stakeholders across the spectrum, including clients, employees, unions, suppliers, contractors and sub-contractors," he said.
"We will also also be commencing a sale and recapitalisation process in order secure a new owner for the businesses."
Meanwhile, the construction union is trying to establish the company's situation and the likely impact on workers.
"The union will work to ensure the interests of our members in the construction industry are made the primary consideration," the CFMEU said
Established in 1987, Probuild is a major design, construction and project management group operating in most states.
It is currently managing at least a dozen major projects across Victoria, NSW, Queensland and WA, including government works.
However, worked stopped on Australian sites on Wednesday after parent company WBHO withdrew financial support from Probuild.
The parent blamed the Australian government's "hard-line approach" to managing the COVID-19 pandemic and its impact on the construction market for its decision.
"The impact of lockdown restrictions on the retail, hotel and leisure and commercial office sectors of building markets ... have significantly reduced demand and delayed the award of new projects in these key sectors of the construction industry," it said.
At the same time, "the potential risk on large mega-building projects outweighs the current margins available".
"The Australian businesses have not been able to complete projects on time and not been able to recover variation and delay claims, resulting in material losses in the financial period to date," it said.
Mr Andrews defended the Victorian government's handling of the pandemic, saying "it's a global event and not one that anyone chose".
The construction sector has faced key material shortages and increasing costs over the pandemic, compounded by a lack of skilled workers.
WBHO tried to sell Probuild to a third party in 2020, but Australian Foreign Investment Review Board approval could not be secured.
