FIRM Construction has gone into voluntary administration, just days after the State Government stripped the building company of its contract to build a primary school in Wellard.
It was also building the new Metronet Bayswater station.
The company had three more government contracts for construction projects at Westminster Primary School, Ocean Reef Senior High School and Lakelands Senior High School.
The builder also holds an $80 million portfolio of high-rise apartments in Nedlands, Mount Pleasant, Applecross and Cannington, all currently under construction.
FIRM director Mark O’Gorman said like many WA builders, the impact of COVID-19 in the past two years, and its knock on effects causing supply chain issues and labour shortages, along with significant material price increases, had placed pressure on FIRM’s operations.
O’Gorman said the cost escalation on all private sector projects as well as government sector contracts signed in mid-2021 to deliver schools, had also placed significant financial pressure on the business and that of its sub-contractors in recent months.
“We have been closely engaged with the Department of Finance in the past few weeks to ensure our approach is aligned in terms of how best to deliver on our public sector projects, and we hope that process will continue while we are taking steps to restructure the company,” he said.
“It is unfortunate that five projects awarded by the State Government between 1 July 2021 and May 2022 did not qualify for any financial relief for the significant cost escalations they incurred.”