The loss of Probuild will send shockwaves through the construction industry as it was one of only a handful of major builders, such as Multiplex, Lendlease, CPB and John Holland, that can complete large scale projects.

While Probuild directly employs over 750 staff, there are fears for the impact on thousands more working as subcontractors, with many padlocked out of sites across the country.

Probuild has been working on several high profile projects around the country worth billions. With over 18 major commercial and public sector projects in development, there is now have a cloud hanging over them. These include 13 projects in Victoria, three in New South Wales, one in Queensland and one in Western Australia, including landmark projects:-

• 443 Queens Street Project (264 luxury residential riverfront apartment tower) – QLD
• Victorian Police Headquarters (46 levels) - VIC
• CSL's (pharmaceutical giant) global headquarters – VIC
• The Exchange at Curtain University - WA
• Greenland Centre (tallest residential building Syd) – NSW
• Victoria University (65 level residential building UNO, Caulfield Village, 430 build-to-rent apartments) - VIC
• Darling Harbour project (30 levels, hotel, apartments, IMAX theatre, retail and entertainment) – NSW

It came after the parent company, WBHO South Africa, announced it was withdrawing any financial assistance after injecting millions to prop them up. You will read in the media a plethora of articles about why, including that they grappled with the government's "hardline" stance with handling the pandemic.

The parent company said it had bailed out the Australian arm of the business with up to $183 million over the past four years. It added that the injection of funds had "severely depleted" its resources, and the losses from the Australian arm would have a "significant" effect on WBHO's financial performance.

Of particular concern is the business's project delivery capability, which has been negatively affected by unplanned Covid-19 restrictions, the contractual environment, and the increased difficulty in raising guarantee facilities necessary to secure new work.

Probuild confirmed the local arm of the business was "abruptly informed" by its parent company that support was being withdrawn.

"The protracted effect of COVID-19 has delayed any meaningful economic recovery and procurement activity in Australia. The Covid-19 pandemic has created challenging trading conditions for many businesses and WBHOA, which certain loss-making projects have also impacted. Our immediate focus will be to undertake an urgent assessment of the entities' financial positions and work with key stakeholders to stabilise the business and projects where possible."

Administrator Deloitte has said it is looking to secure a new owner for the business and "commencing a sale and recapitalisation process" as a cloud hangs over dozens of Probuild projects around Australia.

Deloitte's lead voluntary administrator Sal Algeri said options would be assessed to preserve value. At the same time, it will also engage closely with creditor groups and other stakeholders, including clients, employees, unions, suppliers, contractors and subcontractors.

If you find yourself faced with redundancy, it might be the right time to call in a few favours from contacts you have interacted with throughout your career. That also includes reaching out to recruitment consultants or industry professionals who have an extensive network and can be a great help in your job search. Be respectful in your approach, and mention that you are on the market. A good recruiter who represents clients well will actively work for you, and a colleague may be aware of something you could pursue, either with them or someone else.

To prepare, our article on 'Finding A New Job After Being Made Redundant' may be helpful (see link below).

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