9 Mar 2011

Sovereign's demise no surprise, says association

6:35 pm on 9 March 2011

The Registered Master Builders Association says it is no surprise Sovereign Homes has gone into liquidation.

Auckland-based Sovereign Homes was one of the biggest wholly-owned, non-franchised residential builders in the country.

Association chief executive Warwick Quinn says the period after Christmas can be hard because unless builders have secured new contracts at the end of the previous year, they have lots of debts and little income.

Mr Quinn says there are record low levels of activity in construction at the moment, and Sovereign's demise is a reflection of the tough times.

He says it is ironic that in 18 months' time builders will have more work than they can handle with the rebuilding of Christchurch, but in the meantime the industry could lose more skilled workers.