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Crisis talks metricon homes in trouble news, collapse ceo death suicide

Crisis talks metricon homes in trouble news, collapse ceo death suicide
Mario Baisin, the founder of Metricon, died on Monday, the construction company said in a statement. He was a big fan of AFL and soccer, and he did a lot to help a cancer charity.
One of Australia's biggest home builders is in trouble because prices are going up and it turns out that the founder had problems with his "mental health" before his sudden death.

As it deals with the "sudden and unexpected" death of its founder, the construction giant Metricon is holding crisis talks to figure out what to do.

Mario Biasin, who was 71 years old, died on Monday. The company said in a statement that he had been "struggling with his mental health."

He started the business in 1976 in Melbourne and grew it into one of the biggest home builders in the country, with operations in NSW, Queensland, and SA.

Acting Metricon CEO Peter Langfelder thanked people in the industry and the wider community for their "outpouring of support" and said that the company was not in financial trouble.

Mr. Langfelder said, "We are committed to keeping Metricon running as usual."

"We really appreciate the kind words of support from our business partners, suppliers, trades, contractors, government agencies, and finance partners."

He told Metricon's customers to be patient as they went through a rough few weeks.

His comments come after sales staff were said to have been told to get more deposits to increase cash flow.

Costs in the building industry are going up, so Metricon is reportedly meeting with major clients on Thursday to talk about a crisis.
Costs in the building industry are going up, so Metricon is reportedly meeting with major clients on Thursday to talk about a crisis.

The CEO of the cancer charity Canteen, Peter Orchard, said that Mr. Baisin's help had helped thousands of families.

He was also a big fan of AFL and soccer. For 16 years, he was a director of the Melbourne Victory and helped the Gold Coast Suns get started by sponsoring them.

While AFL team Essendon will honor Mr. Baisin by wearing black armbands when they play Richmond at the MCG on Saturday.

Rebecca Casson, the head of Master Builders Victoria, said that Metricon has been a valuable member for the past 29 years, and that Mario was a good friend of the agency and a very strong supporter of our industry.

The Housing Industry Association's managing director, Graham Wolfe, said that Mario's work and contributions to the residential building industry will always be remembered.

Gideon Kline, the director of Newland Developers, said that Mr. Baisin was a "passionate and committed person." His father, George Kline, co-founded Metricon and worked with Mr. Baisin for decades.

It is thought that the Victorian government and other big clients of the builder will meet with company management on Thursday to talk about their projects.

The builder's acting CEO, Peter Langfelder (shown), said it was "business as usual."
The builder's acting CEO, Peter Langfelder (shown), said it was "business as usual."

Metricon is the largest home builder in Australia. It employs about 2,500 people across the country and is working on thousands of projects. In 2021, it will be ranked as the largest home builder in the country.

But the construction industry is having trouble with rising commodity prices and 24 months of random lockdowns that have messed up pre-priced quotes, schedules, and the supply chain.

The Herald Sun has seen internal company memos that raise questions about cash flow and warn employees that it's "crunch time" for contracts that haven't been signed.

Just the government of Victoria has projects with Metricon worth $195 million.

Builders all over the country are feeling the pinch. In the past year, the price of wood went up 21% and the price of steel went up by 45%.

About 10% more money has been spent on fittings like plumbing, ceramics, and electrical parts.

Metricon said in March that it was going to renegotiate fixed-price contracts in Queensland, but it quickly changed its mind.

In the same month, 18 projects were being built by the Queensland company Condev in southeast Queensland and northern New South Wales.

Co-owner Tracey Marais said that the builder had been hit by a "perfect storm" of rising prices for raw materials and labor, as well as work delays caused by Covid and heavy rains.

In 2022, Probuild, a building company based in Melbourne, put itself into voluntary administration because it owed tens of millions of dollars.
In 2022, Probuild, a building company based in Melbourne, put itself into voluntary administration because it owed tens of millions of dollars.

When asked if she thought other big builders were also having trouble, Ms. Marais said that she was sure this was the case.

She said, "I don't think maybe, I think for sure."

Costs may have also contributed to the failure of the big construction company ProBuild, which owed $14 million to workers on the failed 443 Queen Street project in Brisbane.

Home Innovation Builders and New Sensation Homes, both of which were in Perth, also went out of business recently.

Tristan Kirkham, the managing director of New Home Building Brokers, said he heard from clients of several different companies that their builders weren't getting the job done, but there was a bigger problem.

Mr. Kirkham said that construction costs had gone up a lot, which had a direct effect on tradies.

"Right now, I'm worried about the builders, though not all of them are shady. He told Daily Mail Australia, "Builders will keep falling down if we don't change this industry and how we do things."

He said that clients were calling in a panic because they weren't seeing any progress on construction sites, but he insisted that the workers weren't to blame.

Floods, a lack of workers, and rising costs of materials all hit Queensland construction giant Condev at the same time.
Floods, a lack of workers, and rising costs of materials all hit Queensland construction giant Condev at the same time.

When asked if she thought other big builders were also having trouble, Ms. Marais said that she was sure this was the case.

She said, "I don't think maybe, I think for sure."

Costs may have also contributed to the failure of the big construction company ProBuild, which owed $14 million to workers on the failed 443 Queen Street project in Brisbane.

Home Innovation Builders and New Sensation Homes, both of which were in Perth, also went out of business recently.

Tristan Kirkham, the managing director of New Home Building Brokers, said he heard from clients of several different companies that their builders weren't getting the job done, but there was a bigger problem.

Mr. Kirkham said that construction costs had gone up a lot, which had a direct effect on tradies.

"Right now, I'm worried about the builders, though not all of them are shady. He told Daily Mail Australia, "Builders will keep falling down if we don't change this industry and how we do things."

He said that clients were calling in a panic because they weren't seeing any progress on construction sites, but he insisted that the workers weren't to blame.

Even though people want to buy new homes more than ever, construction companies are more likely to go out of business than any other type.

Data from the Australian Securities and Investments Commission showed that 328 construction companies went bankrupt in the December quarter of last year, compared to 178 in the food and accommodation services sector. Nick Ward, a senior economist with the Housing Industry Association, said that Australia's apartment building sector had recovered from the Covid restrictions.

"After the border closures, confidence in the market did drop, but there are early signs that it's coming back," he told Daily Mail Australia.

Still, Australia's construction industry is having trouble because steel and wood are more expensive because Covid can't keep up with demand.

Mr. Ward said, "In general, the supply of raw materials is a very big problem for builders right now."

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