Five projects stopped as Ca'Bella Construction collapses

Work on five large Auckland building projects stopped abruptly yesterday after an Auckland construction firm was put into receivership.

Ca'Bella Construction had $30 million of building work under way when receivers appointed by the firm's bank pulled the plug.

Workers were locked out and cranes stopped operating when security guards were sent to the sites.

Besides the immediate impact on Ca'Bella's staff and subcontractors, the receivership has raised questions for the owners of a new apartment block in Mt Eden.

Rotten balconies caused by leaks were discovered in September at Eden Two's 97 terraced apartments, built by Ca'Bella.

Repair work has been done but construction disputes arbitrator Geoff Bayley wondered what case the apartment owners would now have.

Mr Bayley said Ca'Bella's collapse would be "soul-destroying" for the construction industry.

Flameguard Fire Protection director Neil O'Dea, whose firm worked for Ca'Bella installing fire sprinklers on the 17-level Renaissance Tower at Manukau and an associated carparking building, was angry about his unpaid bills, but emphasised his firm was financially safe.

His firm organised a "snatch-and-grab" operation to recover gear from building sites as news of Ca'Bella's collapse got around the industry, he said.

"Ca'Bella must have known they were insolvent six months ago, but they kept people working for them just before they pulled the pin."

Many other subcontractors are owed money, particularly large West Auckland plumbing, electrical and air-conditioning firms, which said they did not want to be identified as being tied up with the collapse because they feared for the future of their businesses.



One subcontractor said: "Ca'Bella's problems were that it grew too big too fast, it had some clients who didn't pay, big leaky building problems to rectify at Mt Eden and poor management."

Ca'Bella general manager Nigel Ainley blamed the collapse on cashflow problems and said he was shattered.

Richard Agnew, of PricewaterhouseCoopers, said he and John Waller had been appointed receivers by the Bank of New Zealand, following discussions with Ca'Bella director Glenn Rich.

Mr Agnew is expected to announce the outcome of his investigations in the next few days.

Herald feature: Leaky buildings

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