CMG Homes: Construction industry in chaos as 25-year-old firm folds with $300,000 in debt in latest homebuilder collapse

A multi-award winning construction company has collapsed after more than 25 years in business.

Brisbane-based construction company CMG Homes has on Wednesday appointed Lee Crosthwaite of Worrells as liquidator.

Sir. Crosthwaite said the company was nearly $300,000 in debt but had folded with only one unfinished project.

The family-owned business operated out of Moreton Bay and the Sunshine Coast for 28 years.

It comes as Australia’s construction sector continues to struggle in the wake of the Covid pandemic, with more than 2000 businesses going out of business since 2022.

Crosthwaite said several small construction companies across Queensland had inquired about taking over the business, according to Courier mail.

CMG Homes’ Instagram page features numerous posts of their projects, specializing in ‘knockdowns and remodels’ for the client’s dream home.

One such post shows the director of CMG Homes, Ian Chaplin, with two happy customers as they receive the keys to their new home.

The news comes just over a week after Gold Coast-based construction company Insignia Homes also collapsed owing more than $6 million.

The company left behind eight construction sites that were close to completion and several others earlier in the construction process.

They are just the latest construction firms to stumble in the past year as ballooning material costs and a shortage of skilled labor forced companies into the red.

Master Builders Queensland CEO Paul Bidwell said the spate of collapses had led to a slide in the development of new homes.

The downturn is particularly vicious for Queenslanders after several natural disasters have left homes uninhabitable and in need of rebuilding.

Australia’s construction sector continues to struggle in the wake of the Covid pandemic, with more than 2,000 businesses out of business since 2022 (stock image)

Sir. Bidwell urged the State Government to lead changes in the industry to help it create a ‘clear way forward’ after a big year in non-residential projects.

He hopes construction companies will get busy in the near future with upcoming Olympic and Paralympic Games projects and updated infrastructure while the state’s civilian population is in desperate need of housing.

“There is also a large unmet demand for new housing supply that is essential to meet current demand and keep pace with Queensland’s booming population,” Mr Bidwell said in a statement.

‘To deliver on these we need to ensure builders can run sustainable, profitable businesses, do more with less and develop new ways of building without burning out our current workforce – as well as attracting and retaining more skilled workers to our industry to overcome existing labor shortages.’

He also urged the government to “roll back red tape” on construction projects to bring down costs and increase productivity in the industry.