Contractors and creditors of Jaxon Construction are continuing to await an outcome of the company’s funding application, after a meeting today delivered no resolution.
Contractors and creditors of Jaxon Construction are still waiting on the outcome of the company’s funding application, after a meeting today delivered no resolution.
Work on the University of Western Australia’s $35 million Forrest Hall development remains at a standstill this afternoon after the WA construction company confirmed it was yet to resolve outstanding cash flow issues.
Reports emerged yesterday that construction had been brought to a halt because of cash flow problems at the project, and a spokesperson for the company today confirmed they were awaiting the outcome of a funding application.
Business News understands Jaxon’s executives met today to discuss the bid to recapitalise the project.
But the company appears to be no closer to resolving the issue, with a spokesperson telling Business News it had no update and that the company was still “exploring all options”.
The holding company's latest annual report, for the year to June 2020, shows it had 81 staff and annual revenue of $221 million, along with net assets of $16.7 million.
Jaxon specialises in commercial and large scale accommodation projects and is understood to have at least four major construction projects underway, including St Louis’ $11.4 million Dean Street Apartments in Claremont.
Based on the value of its current projects, the company ranks as the state’s 12th largest in the construction sector, according to Business News’ Data & Insights database.
Jaxon won the Forrest Hall stage two project in February 2020.
The project was designed by Kerry Hill Architects and is intended to house recipients of the prestigious Forrest Scholarship and Fellowship programs bankrolled by mining magnate Andrew Forrest.
Jaxon previously built stage one of Forrest Hall, completed in 2018.
The company has previously said the contract would be a design and construct deal, and was expected to be completed in the September quarter of 2021.
The news comes just three months after the collapse of construction giant Pindan, which left 80 active projects, 280 staff, 500 subcontractors and 400 trade suppliers in limbo.
Initial estimates indicate Pindan's debts were more than $80 million.
The company’s demise has prompted calls by the state’s construction union for a major overhaul of the existing building and construction legislation.