ACT government in discussions to appoint new builder after PBS Building collapse

The Canberra-based construction company was engaged to build 45 "flexi-living" homes in stage two of Strathnairn, part of the Ginninderry joint venture.

Work stopped at the site in early March when five PBS companies entered administration, leaving purchasers of the homes in limbo.

PBS Building's debts across its ACT, NSW and Queensland operations have risen to more than $63 million, investigations by administrators RSM Australia found.

A spokesperson for Ginninderry said discussions regarding a new builder were still under way.

"Discussions are ongoing between the Ginninderry joint venture and PBS Building administrators, RSM Australia, regarding a new builder for the 45 flexi-living homes," they said.

"Due to PBS going into administration, Ginninderry expects delays to the construction program but is not yet able to determine the extent.

"Ginninderry will continue working with RSM Australia while keeping the purchasers updated as information comes to hand."

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

The flexi-living homes are described by the joint venture as "interlocking, individually titled homes" with benefits such as lower price points and reduced maintenance. Buyers were subject to eligibility criteria.

RSM Australia partner Jonathon Colbran said the recommencement of work at impacted PBS sites was the desired outcome for stakeholders.

"The administrators, the company directors and former PBS employees have been engaging regularly with the principal of the the Ginninderry joint venture to assist them to move forward with recommencing works as soon as possible," he said.

Meanwhile, new builders have been appointed at a number of other PBS Building sites in Canberra.

A spokesperson for developer Stockland confirmed a replacement builder had been found for the first stage of its residential project The Parks in Red Hill.

"We have recently engaged Patterson Building Group to complete final works on stage one homes and 90-day defects for settled customers in Red Hill," the spokesperson said.

"We will be working with [Patterson] over the coming weeks to understand the program to complete the builds and will be informing our customers accordingly."

The spokesperson said a procurement process was under way to engage a new builder for stage two of the development.

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Work recommenced in March at the Belconnen Markets redevelopment, which was also impacted by PBS Building's administration.

Construction Control was appointed to replace PBS Building less than a week after the work site shut down.

Doma also secured a replacement builder in March for its residential project The Melrose in Woden.

The developer appointed local builder Bloc to complete the 16-storey tower and also announced it would use a trust account to ensure subcontractors were paid directly for future work.

"Given the number of businesses impacted by the collapse of PBS, Doma have instigated the use of a trust account for all future payments to ensure that any money paid by the developer for works completed gets paid directly to the subcontractors for this project," Doma general manager Gavin Edgar said at the time.

Following a Federal Court extension, administrators now have until June 30 to lodge the final creditors' report and until July 7 to hold the second creditors' meeting, when the future of the companies will be determined.

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