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About a quarter of projects that were at various stages of construction at the time 50-year-old building company Project Coordination (Australia) Pty Ltd went into voluntary administration have taken steps to restart operations.
The status of the company’s current building projects was among a range of updates Company Administrator RSM Australia Partner Jonathon Colbran shared at the first meeting of creditors today (2 April 2024).
More than 70 creditors — predominantly comprised of sub-contractors and suppliers — who believe they are owed money by the ACT and NSW-based company attended the meeting online or in-person in Canberra.
“By their very nature these meetings are tough for everyone involved,” Mr Colbran said.
“No business wants to owe money and no individual or business wants to be out-of-pocket for their services. Despite the challenging situation the meeting was productive and constructive,”
Mr Colbran told creditors the Administrators had secured all company assets, including bank accounts, project sites and equipment at the company’s Canberra and Wollongong offices, upon their appointment on 19 March 2024.
“We undertook an immediate review of the projects that were underway but had ceased immediately prior to our appointment and contacted project Principals to discuss the status of contracts and options to recommence construction and re-engage sub-contractors, where possible,’’ he said.
“In addition to the original 14 ‘live’ projects identified — 10 in the ACT and 4 in NSW — we have identified an additional two projects in the ACT, one at design stage and the other where practical completion had not been formally achieved but the owner had already taken possession.”
Mr Colbran said the Administrators had so far received about 200 formal creditor claims valued at more than $25 million.
“The number of creditors and value of claims will continue to evolve over the course of the administration and as our reconciliation process continues,” he said. 
Mr Colbran said Project Coordination Company Directors had been assisting the Administrators by providing access to company systems, records and accounts and supporting their liaison with project Principals and sub-contractors to help get projects restarted as quickly as possible.
“This is a complex administration based on the size of the company, its operational footprint across two states, and its current project contractual arrangements. Our priority is to recover and preserve company assets and maximise their value, for the ultimate benefit of creditors. This takes time,” he said.
“Given this, I flagged with creditors that the Administrators are exploring the possibility of extending the administration process which would impact the delivery date of our report to creditors and the next meeting. No decision has been made yet, but there was no objection at the meeting."
“We will update creditors in due course regarding the proposed way forward regarding a possible extension of the administration.’’
Project Coordination is the latest in a series of high-profile company insolvencies RSM Australia Partners, including Mr Colbran, have been appointed to lead in the ACT, NSW, QLD and VIC, including the PBS Group, Langford Jones Homes, Pialligo Estate, Cubitt’s Granny Flats and Home Extensions, and several GDK Group companies.
FOR MORE INFORMATION
Creditors affected by the administration of Project Coordination should contact RSM via email at [email protected]. Former employees should contact RSM via email at [email protected].
