Up to 100 WA property owners are sweating on the future of a high-profile building group that appears to be teetering on the edge of collapse after it was issued with a wind-up order by the Australian Taxation Office.
In a fresh blow to the country’s building sector, Simsai Construction Group’s future remains clouded as it prepares to face a Federal Court hearing over the matter on November 14, a notice published by ASIC shows.
The Perth firm trades as First Home Buyers Direct, Multi Develop 360 and Express Homes and is understood to have as many as 100 homes at various stages of construction.
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Winding up orders force companies to cease trading, so their assets can be sold to pay creditors. The process is also known as compulsory liquidation.
According to reports, Simsai Construction Group plans to fight for its survival and hopes to have the order “sorted in the next two to three weeks”.
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Building and Energy, the state’s watchdog for the sector, said it is aware of the action lodged by the ATO and is monitoring the situation.
It is also undertaking its own assessment of the company’s financial position.
“Building and Energy understands Simsai has several works in progress. As part of its assessment, Building and Energy will seek details from the company about these projects,” a spokesperson said.
“We are unable to release information about any complaints or investigations that may be in progress.”
Simsai Construction Group faces an uncertain future, leaving scores of homes in limbo. Credit: Dan Reynolds Photography
The watchdog has taken a hardline approach in recent times, refusing to renew building registrations for two high-profile companies it said had failed to meet financial requirements set out in the Building Services act.
Those two builders were Intellibuild Constructions and FTD Construction.
Simsai Construction Group was established in 2009 and shares its ambitions to “become a top 10 builder in WA by 2025” on its webpage.
It also describes itself as a “true gem” in the WA construction scene, thanks in part to its dedicated team.
It comes off the back of more than 2200 building companies going into administration during the 2022-23 financial year.
The alarming downfall — which has been blamed in part on fixed price contracts, an escalation in costs, supply chain problems and trade shortages — was described by one expert as the industry’s worst crisis in decades.
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