PBS Building collapse stalls construction of homes in Strathnairn, Ginninderry

The impact of the company's collapse is also taking a toll on local construction businesses.

One subcontractor is seeking to recover about $300,000 that was "ripped out" of his businesses this week.

PBS Building appointed external administrators for five of its companies, which operate in the ACT, NSW and Queensland, on Tuesday afternoon.

Some 80 projects are impacted by the company's collapse, including 45 homes currently under construction in the Ginninderry development.

Ginninderry is a joint venture between the ACT government and Riverview Group located on the ACT and NSW border.

The joint venture engaged PBS Building in 2021 to construct 45 homes in Strathnairn.

"Since learning of the news surrounding PBS, Ginninderry has been in contact with each purchaser," a spokesperson for Ginninderry said.

"Ginninderry will work with any administrator appointed to determine the impacts and how best to complete the homes currently under construction."

The spokesperson said purchasers will be kept informed as more information becomes available.

PBS Building owes more than $25 million to some 1000 creditors, the appointed administrators confirmed on Tuesday.

Jacko Davis owns two businesses that were subcontracted by PBS Building for a major residential project in Red Hill.

Together the two businesses are owed about $300,000 and there is no telling when it will be paid back.

"All the money that's owed is money that's already been paid out on wages and materials that we have no way to recover," Mr Davis said.

"We've already paid for all of it. We were just waiting on payment from PBS."

Mr Davis now needs to find a way to recover it.

"To have $300,000 ripped out of our operating cash flow leaves a sudden massive hole, which means that we now have to look at what we can do to immediately reduce our outgoings," he said.

"Because we don't want this to flow on."

Mr Davis' bricklaying company CTR Pacific and equipment hire company Skyhire were subcontracted to work on residential development The Parks in Red Hill.

PBS Building were contracted by Stockland for the development.

Work at the site stopped on Friday afternoon as word circulated of PBS Building facing financial troubles.

Mr Davis said "everyone hit panic stations" and his team immediately went to the site to retrieve tools and equipment.

PBS Building appointed external administrators for five of its companies, which operate in the ACT, NSW and Queensland, on Tuesday afternoon.

PBS Building founder Ian Carter and the board of directors issued a statement saying it closed down its building sites with "the express purpose of not incurring any further expenses".

"We took this step to ensure that we could negotiate better outcomes with clients for the ultimate benefit of creditors," the group said.

In the wake of the PBS Building collapse, Mr Davis wants to see better protection for ACT businesses.

He said at the moment subcontractors in the ACT can be waiting longer than two months to be paid for their work.

In NSW, tighter security of payment laws stipulate head contractors must pay subcontractors for their work 20 business days after a payment claim is made for non-residential work or 10 days for residential work.

"If you reduce how long builders have to pay by the Security of Payments Act you reduce the exposure to everyone in the event of an insolvency because the amount owing is less," he said.

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The Construction, Forestry, Maritime, Mining and Energy Union has also ramped up calls for a national approach to security of payment laws.

"It's crazy that if these sites were in Queanbeyan, there'd be tougher measures to recover money owed to subcontractors and workers," CFMEU ACT secretary Zach Smith said.

"We're urging the ACT government to implement effective security of payment laws so more people aren't ripped off when the next building company collapses."

Master Builders Association of the ACT CEO Michael Hopkins said the impact of PBS Building's voluntary administration would be widespread.

"This will have a devastating impact on employees, subcontractors and suppliers in our local building and construction industry," he said.

Mr Hopkins said the association will assist members who have been impacted.

Do you know more? Contact brittney.levinson@canberratimes.com.au

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