Two more local builders go under

Industry watchdog Building and Energy says it has been investigating concerns regarding the building and contracting practices of residential builder Flexible Homes, which went into liquidation this week.

Liquidators were called into two Perth-based builders on Tuesday, Flexible Homes and Prostruct, against the backdrop of an overheated construction market in the state. 

A voluntary liquidation notice for residential builder Flexible Homes was filed with ASIC on Tuesday, with Gregory Paul Quin and Kimberley Stuart Wallman of HLB Mann Judd Insolvency WA listed as joint liquidators and appointees.

Flexible Homes had been directly contracted for 19 projects, according to a statement issued this afternoon by Building and Energy.

Property owners impacted by the collapse have been urged to contact their insurer by the watchdog.

"Building and Energy is advising property owners affected by the liquidation of Flexible Homes Pty Ltd to contact their home indemnity insurance (HII) provider, QBE Insurance," it said. 

The group said it was evaluating its options for its investigation into the company following the appointment of liquidators. 

"Building and Energy has been investigating concerns about Flexible Homes’ building projects and contracting practices," it said. 

"Building and Energy can also take action against other building contractors if they are found to have engaged in improper conduct."

Flexible Homes' website and social media have been taken down. 

Business News has contacted HLB Mann Judd for comment.

Both companies join a growing list of builders entering liquidation in recent months, as the state's building sector grapples with ballooning construction costs as well as labour and material shortages.

David Hurt and Jimmy Trpcevski of WA Insolvency Solutions - a division of Jirsch Sutherland - were named joint appointees to Prostruct Pty Ltd on Tuesday, a voluntary liquidation notice filed with the Australian Securities and Investment Commission shows. 

Mr Trpcevski told Business News the company had ceased to trade effective yesterday, but that his firm was still obtaining further information on the business.

According to its website, Prostruct was founded in 2005 and is based in Jolimont. The site lists a handful of commerical projects, including a two-storey warehouse in Henderson and an office fit-out in Jandakot. 

Prostruct was also listed as the builder for the Avery Vista Apartments in Canning Vale, a project understood to have been completed approximately 12 months ago. 

It follows the liquidation of Two Rocks-based residential builder Pride Homes & Developments earlier this month, which left about a dozen projects in the lurch. 

In May, Slatter Group WA appointed EY to liquidate the 20-year-old company, which specialised in the education sector.