Construction firm Greatearth to shut down business, with PwC as provisional liquidators

06-Sep-2021 Intellasia | PropertyGuru | 1:10 AM Print This Post
Construction firm Greatearth to shut down business, with PwC as provisional liquidators
Construction firm Greatearth to shut down business, with PwC as provisional liquidators

Greatearth Corporation and Greatearth Construction were the main contractors for the Senja Heights, Senja Ridges, Marsiling Grove, Sky [email protected] Batok and West Coast Parkview BTO projects, all of which will see a delay.

After pulling out of five Build-To-Order (BTO) projects in August, construction company Greatearth Corporation and its related entity Greatearth Construction are now closing down their business with the appointment of provisional liquidators, reported TODAY.

The two companies announced in a newspaper advertisement on 3 September that they could no longer continue in business.

In fact, professional services firm PwC has already been appointed as provisional liquidators for the companies. A meeting with their creditors has also been set for 27 September.

Last month, the Housing and Development Board (HDB) revealed that five BTO projects would face further delay as the two companies could no longer carry on with the projects due to financial problems.

The five affected projects are Senja Heights in Bukit Panjang, Senja Ridges in Bukit Panjang, Marsiling Grove, Sky [email protected] Batok and West Coast Parkview.

The delays are expected to affect buyers of 2,982 BTO units that are spread across a total of 13 blocks.

HDB had said that the contractors faced financial difficulties despite the assistance received from the government, like advance payments.

Contractors noted that the collapse of Greatearth Corporation and Greatearth Construction means that they may no longer collect the money owed to them.

One contractor shared that Greatearth owed his company about $80,000.

It was previously reported that some construction companies are losing money on each project they accept since the COVID-19 pandemic hit the city-state.

Faced with the high cost of materials and severe labour shortage, many contractors said they are working on “dead” projects, given the enormous losses they would incur by the end.

They also pointed to the poaching of workers as another serious problem facing the industry.

Looking for a property in Singapore? Visit PropertyGuru’s ListingsProject Reviews and Guides.

Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: [email protected]

 

Category: PRAsia, PropertyAsia

Print This Post

Comments are closed.