Australia’s scaffolding trade body has said the voluntary administration of the Kwikform group highlights wider concerns over subcontractor exposure and payment risk across the construction sector.
The Scaffolding Association Australia said the appointment of administrators to the group would have a direct impact on workers, subcontractors, creditors and the wider construction industry.
Kwikform, one of Australia’s major scaffolding and formwork providers, entered voluntary administration last month. Hundreds of employees are understood to be affected, alongside a broad network of suppliers and subcontractors.
In a statement on its website, the association said the administration process should be allowed to run its course, but added that the immediate impact on those affected should not be overlooked.
“This is a difficult situation for many across the sector,” the association said.
“Hundreds of employees and a wide network of suppliers and subcontractors are now facing uncertainty following the collapse of a major scaffolding and formwork provider involved in projects across Australia.”
The association encouraged affected parties to seek legal, financial and advisory support while the administration process continues.
It also said the collapse raised broader questions about how construction supply chains deal with insolvency.
“Events such as this also highlight broader, system-level issues within the construction industry that warrant attention,” it said.
“In particular, the vulnerability of subcontractors in insolvency scenarios, exposure to unpaid claims, and risks associated with retention and delayed payment structures remain ongoing concerns.”
The association said the scaffolding and access sector plays a key role in supporting construction activity across Australia and called for better protection for businesses and workers in the supply chain.
“Ensuring that businesses and workers in this part of the supply chain are better protected must remain a priority for policymakers and industry stakeholders alike,” it said.
The Kwikform administration follows ongoing pressure across parts of Australia’s construction market, where rising costs, tighter margins and delayed payments have continued to affect contractors and suppliers.
