Another building company collapses, leaving ACT projects in limbo

Indigenous construction company Rork Projects, which was established in the ACT, entered into voluntary administration on March 1.

Administrators have confirmed the company had about 63 active projects across Queensland, NSW, Victoria and the ACT at the time of administration.

It is understood there were 14 active projects in the ACT.

Work at all active sites will be halted while the administration process takes place.

In a statement posted to the Rork Projects website, director Brian O'Rourke said the administration came after "devastating" industry challenges.

"This was the final step in a long journey to find a solution for our staff, clients and subcontractors, and we acknowledge the devastating impact this outcome has on them," he said.

"The tsunami of impossible economic conditions is smashing the construction industry with upward of 2000 construction businesses collapsing in 2023."

Mr O'Rourke said builders were "in crisis" due to "high interest rates, labour shortages and material supply constraints" following the COVID-19 pandemic.

"The construction market is facing one of the worst storms since the mid-1970 crisis," he said.

"While devastating for us, it is also damaging to the Australian economy and community.

"Thank you to everyone who we have worked alongside."

According to the company's website, Rork Projects was founded more than 26 years ago "in the spare bedroom of a rented high-rise apartment in Kingston".

Husband and wife Brian and Angela O'Rourke launched the company in 1997 as Rork Designs, which evolved into a national construction, fit-out and refurbishment company.

The group employed about 100 staff by 2022, the website states.

Canberran John Paul Janke, a childhood friend of Mr O'Rourke, joined Rork Projects in about 2017 as a co-owner.

He was not listed as a director of the company at the time of the administration, however remains listed as a shareholder of Rork Projects (Holdings) Pty Ltd.

His LinkedIn profile shows he worked at Rork Projects until March 2024, most recently as director of communications.

The Canberra Times contacted Mr Janke for comment.

The group's previous Canberra projects include upgrades at the Alexander Maconochie Centre correctional facility, multiple jobs at University of Canberra and Canberra Institute of Technology and recent upgrades to City Walk, between Garema Place and Ainslie Place.

Rork Projects is a nationally accredited Indigenous construction company that focuses on engaging Indigenous companies as suppliers and subcontractors and supporting career pathways for Indigenous youth.

The ACT government engaged Rork Projects to build the $1 million Gold Creek Senior School expansion in 2021.

McGrathNicol Restructuring partners Mark Holland, Anthony Connelly and Jamie Harris were appointed as administrators for the three Rork Projects companies.

The companies are Rork Projects (Holdings) Pty Ltd, registered to an ACT address, and Rork Projects (QLD) Pty Ltd and Rork Projects Pty Ltd, both registered in Queensland.

A virtual first meeting of creditors for the Rork Projects companies has been scheduled for March 13.

In a statement, Mr Holland said work at the group's active job sites would pause while the administration took place.

"An urgent assessment of the business is under way, which includes urgently exploring transaction or recapitalisation options to determine if a solution can be found to support customers, employees, subcontractors and other stakeholders," he said.

"We will work with site managers to pause work and secure project sites whilst that assessment is being undertaken."

The company's collapse comes after a series of building company insolvencies across Australia and in Canberra.

Cubitt's Granny Flats and Home Extensions, a 30-year-old ACT-based business, went into voluntary administration in February.

In 2023, Canberra's PBS Building went into liquidation, after a six month administration process, owing about $169 million.