Wellington builder in liquidation

The collapse of a prominent Wellington building company is being called a sign of the times.

The Wellington franchise of David Reid Homes has gone into liquidation, with reports of subcontractors being left tens of thousands of dollars out of pocket.

Richard Michael from the Contractors Federation said businesses need to be able to borrow money because of the time it takes to get paid by the end user, but the recession is making it increasingly difficult to do so.

He said often companies get into trouble through no fault of their own, but because they cannot operate without liquidity.

Michael said the collapse will have a flow-on effect on the subcontractors who are out of pocket.

- NEWSTALK ZB