ZB ZB
Live now
Start time
Playing for
End time
Listen live
Listen to NAME OF STATION
Up next
Listen live on
ZB

Construction company collapse blamed on 'perfect storm' in industry

Author
Newstalk ZB,
Publish Date
Thu, 2 Aug 2018, 6:36AM
Connal Townsend says when there's a building boom the wheels spin so fast, they start to fall off. Photo \ Getty Images

Construction company collapse blamed on 'perfect storm' in industry

Author
Newstalk ZB,
Publish Date
Thu, 2 Aug 2018, 6:36AM

The collapse of construction companies is being blamed on a perfect storm in the industry.

Ebert Construction is the latest building firm to be put into receivership, leaving 95 employees in limbo and 15 contracts up in the air.

Property Council chief executive Connal Townsend told Kate Hawkesby developers try to screw the price down and transfer all the risk onto construction companies, who hope there isn't going to be any increase in price.

"But there is always is, you know: labour costs, building products, delays in time in consenting and they get caught out with it, so what do they do? They try to transfer the risk down to the subbies and on it goes down the process."

Townsend says when there's a building boom the wheels spin so fast, they start to fall off.

LISTEN ABOVE AS CONNAL TOWNSEND SPEAKS WITH KATE HAWKESBY 

Take your Radio, Podcasts and Music with you