Construction group Rork Projects goes into administration as cost of living crisis and high interest rates 'ts

A construction company co-owned by a leading Voice campaigner and SBS presenter has gone into administration with higher interest rates and building costs blamed.

Rork Projects, which specialised in building refurbishments and commercial office fit-outs, has appointed insolvency firm McGrathNicol as administrators, with 63 active projects affected in NSW, Queensland, Victoria and the Australian Capital Territory.

The company, established in Canberra in 1997, was also co-owned by a leading Yes campaigner for the Voice, John Paul Janke, who hosts an Indigenous affairs TV program on SBS's NITV channel.

Managing director and co-founder Brian O'Rourke announced that several of his companies went into administration on Friday after 26 years, with state governments among his clients.

'It is with a heavy heart I announce that after 26 years of operations, Rork Projects was forced to commence voluntary administration on 1 March 2024,' he said.

'This was the final step in a long journey to find a solution for our staff, clients and subcontractors, and we acknowledge the devastating impact this outcome has on them.'

Another construction company has gone into administration with higher interest rates and building costs blamed

Mr O'Rourke said rising interest rates and building costs amounted to a 'tsunami of impossible economic conditions'.

'Builders are in crisis because of high interest rates, labour shortages and material supply constraints following the pandemic,' he said.

While inflation has moderated to a two-year low of 4.1 per cent, he likened the present spate of building company collapses to the 1970s when inflation and unemployment were both high. 

'The construction market is facing one of the worst storms since the mid-1970 crisis,' Mr O'Rourke said.

'While devastating for us, it is also damaging to the Australian economy and community.

'Thank you to everyone who we have worked alongside.'

Rork Projects on LinkedIn described itself as 'Australia's Leading Indigenous Construction Company' with the affected companies including Rork Projects (Holdings) Pty Ltd, Rork Projects (QLD) Pty Ltd and Rork Projects Pty Ltd.

McGrathNicol partner and voluntary administrator Mark Holland said an urgent assessment was being done, with Anthony Connelly and Jamie Harris also appointed as voluntary administrators.

'An urgent assessment of the business is underway, which includes urgently exploring transaction or recapitalisation options to determine if a solution can be found to support customers, employees, subcontractors and other stakeholders,' he said.

'We will work with site managers to pause work and secure project sites whilst that assessment is being undertaken.'

Mr O'Rourke and his school friend Mr Janke had established the company in Canberra in 1997.

'One of the most thrilling recent developments for Brian O'Rourke and Rork Projects is having the opportunity to partner with a former school friend John Paul Janke,' Mr O'Rourke told the B2B business magazine in 2017.

Mr Janke, who has Indigenous heritage, has  is also the co-host of SBS and NITV's The Point program with Narelda Jacobs, and had been the construction company's communications director.

He had been a leading campaigner for last year's doomed Yes case for the Indigenous Voice to Parliament and had claimed on the ABC's Insiders program the No campaign had used artificial intelligence images.

Rork Projects, which specialised in building refurbishments and commercial property, has appointed insolvency firm McGrath Nicol as administrators, with operations affected in NSW , Queensland , Victoria and the Australian Capital Territory

'Some of them now are using AI with black, Indigenous characters to try and look like it's an Indigenous person supporting the No campaign,' he in August 2023.

No campaign co-leader Jacinta Nampijinpa Price, who is also a Northern Territory Country Liberals senator, branded Mr Janke's comments a 'complete and utter lie'.

'Of all the racist, offensive, inaccurate things that have been said about the No campaign, this is probably the worst,' she said at the time.

Rork Projects did work for state government-funded projects including a refit of Queensland's Department of Education offices and the Alexander Maconochie Centre, a prison in Canberra.

While Rork Projects had an announcement on its website, the company has closed down its Facebook and Instagram accounts. 

In January 2024, 552 companies entered into external administration for the first time, marking a 53.8 per cent surge compared with the 359 in January 2023, Australian Securities and Investments Commission data showed.

This occurred after the Reserve Bank of Australia in November raising interest rates for the 13th time in 18 months to a 12-year high of 4.35 per cent, adding to the most aggressive hikes since 1989.