Lloyd Construction went into voluntary administration this week leaving billions of dollars worth of projects in limbo. Among them is Turkish Maarif Schools Auburn Gallipoli Campus.
Lloyd Construction won the tender to build Turkish Maarif Foundation's new campus in Auburn in 2021 after a very tight and competitive bid.
The construction had begun immediately to be finalised late 2022 or early 2023. There were delays due to COVID restrictions, which slowed down the delivery of the project.
And now, as the project was almost finished, the worse of the news arrived. The company, which was known in the industry for working on the thinnest of margins has gone into voluntary administration.
Lloyd is among many similar companies that has collapsed due to increased material costs and shortage of labor.
An industry insider has told TVOA recently that fixed price contracts won by builders all carry the same risk in the face of material price hikes. Some building material prices have rise over 30% recently. The industry insider highlighted the importance of protecting the builder by the developers and financers, as it would take tremendous amount of extra spent on projects to replace the builder halfway through the project.
Suppliers, employees and clients, like Maarif Foundation now have to wait until the administrators to look into the books of Lloyd Group and find a way to settle all grievances.
TVOA's understanding is that the Lloyd Group was almost about to finish the project, therefore it is anticipated that the negative impact of company's collapse on the Turkish campus would be minimal.
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