In a letter to clients on Friday, Mahercorp Chief Executive Steve Maher blamed recent “unprecedented challenges” but insisted the company he founded in 2002 was not dead.
He said going into voluntary administration was the only option after problems with the main provider’s insurer. Construction work on 730 properties is expected to be suspended for five weeks.
“As we all know, all builders are now facing unprecedented challenges. Construction costs are skyrocketing – material and labor costs are at record levels, and rising inflation is putting enormous pressure on builders,” Maher said in the letter circulating online.
“To ease the pressure of these cost increases, we have been renegotiating our terms of trade with our suppliers and insurers for several months. Their support has helped us manage rising costs to date.”
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Premier Daniel Andrews announced this week a $15 million rescue package To compensate 560 families whose deposits were supposed to be protected by insurance following the collapse of Porter Davis.
At least 40 prospective homeowners were affected when Hallbury Homes appointed managers in January, but there have been no government bailout For those without the necessary insurance.
with AAP
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