Before it collapsed, Snowdon Developments was an average of 39 days late on paying creditors, according to CreditorWatch, an Australian credit reporting agency. The industry average for overdue payments is one week.

CreditorWatch data also shows the Essendon-based company has at least three outstanding default debts to a skip bin provider, a roofing company and a demolition firm totalling more than $255,000 – with court action launched by the demolition company last month.

The company has had over 631 credit inquiries in the past 12 months alone.

Australia’s construction costs spiked over the past few months, driven by inflation, economic stimulus and supply chain challenges.

Large infrastructure projects, the residential construction boom, surging transport costs and increased pressure on freight and reliability combined to drive increases across all key material and staffing indicators over the past 12 months, according to data from global professional services firm Turner & Townsend and commercial agency CBRE.

But, in good news for home builders and the construction sector more broadly, prices should peak this year and moderate next year.

“Most cost escalations have now been built into project pricing, particularly for building materials, and further price increases will be more modest,” CBRE’s head of research Kate Bailey said.

“While supply chain delays will persist, improvements are expected in early 2023 with cost increases from next year onwards to be largely driven by higher wage costs,” Bailey said.

The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.