Victorian residential construction group Langdon Building has gone into voluntary administration.
The company builds homes in Ballarat, Geelong, Bendigo and Melbourne’s north and west, and has its head office in the Ballarat suburb of Alfredton in central Victoria.
Langdon Building, registered in 2005, is the home building company to face insolvency as higher interest rates and building costs hurt the construction sector.
It is also the parent company behind Langdon Homes and Smart Building by Langdon, n Securities and Investments Commission records show.
Langdon Building on Monday appointed Sam Kaso and Shaun Matthews from restructuring advisory firm Cor Cordis as voluntary administrators to help restructure its business.
Director Shane Langdon established the business with his wife Pam, initially in Ballarat.
Fixed-price contracts have caused a rise in insolvencies with Langdon Building’s home page selling a guaranteed price under the slogan: ‘Build with confidence’.
Ballarat-based Langdon Building has gone into voluntary administration.
The company builds homes in Ballarat, Geelong, Bendigo and Melbourne ‘s north and west, and has its head office in the Ballarat suburb of Alfredton
‘Lock in your build cost for 2023,’ it said.
‘Build with confidence, knowing that with Langdon we guarantee no price increase for your build by locking in today.’
The Reserve Bank of in November raised interest rates for the 13th time in 18 months, taking the cash rate to a 12-year high of 4.35 per cent.
The growth in construction costs, however, is moderating as inflation also slows down.
The CoreLogic Cordell Construction Cost Index showed wholesale costs rising by 2.9 per cent in 2023, which was well below the inflation rate of 5.4 per cent in the year to September.
But overall number of struggling companies is still rising with ASIC data for December showing first-time insolvencies rose by 16 per cent to 727.
Daily Mail has contacted Langdon Building and Cor Cordis, the administrator.
Fixed-price contracts have caused a rise in insolvencies with Langdon Building’s home page selling a guaranteed price under the slogan ‘Build with confidence’