WELLINGTON (Reuters) - One of New Zealand's biggest construction firms, Arrow International (NZ) Ltd, said it had been placed into voluntary administration, the latest builder to struggle in the midst of the country's largest building boom in a generation.
The move followed an "unexpected adjudication outcome", the firm said in a statement on Thursday, without elaborating further on its financial situation. It did not immediately respond to request for comment.
Arrow undertakes about NZ$400 million ($272.2 million) worth of projects annually in Australia, New Zealand and the Pacific, including commercial property, residential apartment buildings, resorts and hotels, according to its website.
Demand for construction has soared in New Zealand in recent years, driven by a surge in immigration and investment coinciding with the need for massive rebuilds after two earthquakes in the South Island.
But rising costs for materials and labour have troubled firms as projects dragged on due to worker shortages.
Peter Silcock, the head of industry body Civil Contractors New Zealand, said the Arrow collapse was "another demonstration of what is wrong with the construction industry in New Zealand".
"Arrow is one of New Zealand's top vertical construction companies and it's a real shame to see a well-respected player exit the market. We need to see a more equitable distribution of risk and a more collaborative approach," he said in a statement.
Auckland-based firm Ebert Construction was placed in liquidation late last year, months after construction giant Fletcher Building Ltd announced cost overruns at major projects which forced it to restructure its debt.
BDO said in a statement would meet Arrow's creditors within eight working days.
(Reporting by Charlotte Greenfield; Editing by Stephen Coates)
