Veteran Sydney builder Novati Constructions collapses into voluntary administration

Australia’s property construction sector has lost one of its longest-standing players with the sudden collapse of Novati Constructions Pty Ltd, a Sydney-based builder operating since 1971.

Administrators from Worrells were appointed this week after the nearly 50-year-old company was placed into voluntary administration, triggered by financial difficulties that reflect broader pressures on the industry.

A first creditors’ meeting has been scheduled for next Wednesday (18 February) as stakeholders seek clarity on the business’s future.

Family business brought to a halt

Novati Constructions was founded in 1971 by Peter Novati and remained a family enterprise, with Luisa and Marco Novati listed as company directors at the time of the collapse. Marco Novati also served as the firm’s group manager, steering the company’s operations across nearly five decades.

Over its long history, Novati completed a range of residential and commercial projects throughout Sydney.

Its portfolio includes notable builds such as the Dicker Data warehouse in Kurnell, luxury apartments in South Cronulla, and the fit-out of the Manly Civic Club.

The company also received industry recognition, with a 2017 award from the Master Builders Association of NSW for excellence in the $10 million-$15 million category for its work on a disability accommodation project at Sargood on Collaroy.

Despite this track record, company finances appear to have deteriorated to the point where voluntary administration was the only viable option.

With Novati now under the control of administrators, the immediate focus will be on assessing liabilities, ongoing contracts and potential outcomes for creditors, subcontractors and clients.

Industry under mounting strain

Novati’s collapse adds to a growing list of construction firms succumbing to financial pressure in recent years.

According to industry data, 1,567 construction companies entered administration during the 2025 financial year alone, a sign of sustained stress across the sector driven by rising input costs, labour shortages and tighter credit conditions.

TIACS, a blue-collar industry counselling service, offered its services to 1,100 people in the last financial year.

While the company’s long history and project portfolio suggest a legacy of capability, its downfall highlights an environment in which even established builders are vulnerable.

This follows a broader trend of insolvencies in the building and construction industry, which has been under strain from elevated construction costs and project delivery challenges in the wake of the pandemic and shifting economic conditions.

For customers, subcontractors and suppliers with exposure to Novati Constructions, the administration process raises immediate questions about contract fulfilment, project continuity and financial recoveries as administrators begin their review.

Novarti family blame tough operating environment

On 8 February, Graeme Beattie and Aaron Lucan of Worrells were appointed administrators of Novati Constructions.

Mr Beattie issued a media statement Thursday (12 February).

“The administration has only just commenced, and we are working diligently to establish Novati’s financial position.

“This includes identifying assets available for realisation and quantifying creditor claims, with assistance from the directors and senior management. We are mindful of the impact this appointment will have on all stakeholders, particularly its clients, subcontractors and employees.”

“In preliminary discussions with the directors, they have indicated their desire to propose a Deed of Company Arrangement. In accordance with our fiduciary and statutory duties, we will consider whether that Deed, if proposed, is in the interests of creditors.

“Creditors will be informed of any material updates at the forthcoming meeting of creditors and in our next report to creditors”

Through the administrators, Luisa, Alberto and Marco Novati also issued a statement.

“We remain proud of Novati’s 40 years of history and reputation in the industry, during which time Novati has successfully delivered dozens of major commercial and residential projects.

“Unfortunately, ongoing market pressures have made Novati’s continued operations unsustainable, due to market uncertainty, increase in cost of materials and labour and interest rate rises.

“Over the past several months, we have canvassed solutions for the current financial position of Novati, however, have made the difficult decision to appoint Graeme Beattie and Aaron Lucan as administrators.

“We will work closely with the administrators over the coming weeks to ensure the best outcome is achieved for stakeholders”