Australia’s Insolvency and Trustee Service has revealed that bankruptcy has risen by a third in the last two years within the science, building and engineering professions, according to architectureanddesign.com.au.
Bankruptcies rose by 29% in 2008-09 (44 individual cases) for architects, landscape architects, quantity surveyors and civil engineers in comparison with 2006-07.
Also was also an increase of bankruptcy by 475% in the number of associate professionals such as draftsmen.
Economic conditions, credit restrictions, lack of business potential and under-quoting were cited as reasons by the practitioners.
Master Builders Australia CEO Wilhelm Harnisch called the statistics very worrying but not necessarily surprising, given the economic challenges of the past two years.
The design profession was hardest hit as clients were not commissioning new work.
Harnisch said there was a lot of demand in the residential, commercial and non-residential building sectors.
The government, however, has offered tax relief through assistance programmes.