Administrators are sifting through the rubble of collapsed building company Pindan Group.

The company has gone into external administration owing between $70 and $80 million dollars to around 1,400 creditors. 

About 135 Pindan Group employees have lost their jobs in recent days.

Administrator Sam Freeman from EY says his team will investigate how the company collapsed.

“We understand that the directors had been pursuing opportunities to bring in new investors over the last few months,” he said.

“Over the course of the last few days, those investors withdrew from the process and accordingly they made an appointment.

“Unfortunately we have had to let some people go today, so there have been approximately 135 people let go today within the wider Pindan group. It's been a difficult day.

“I understand that there has been a lot of wage pressure on the business, COVID has had an impact also.

“We have very limited funds, and absent funding that's obviously particularly challenging for completion of projects, so we need to work with the stakeholders to find a solution.

“Given the volume of claims here and the assets that we're aware of, unless we're in a position to complete contracts with funding to do so, there will be creditors left out of pocket,’ Mr Freeman told reporters.

Pindan went down while still running 68 active projects, with about 280 employees, 500 subcontractors and 400 trade suppliers. It is the head contractor for a number of WA government projects.

Pindan’s directors are working with administrators, who are yet to work out whether the company was trading while insolvent. 

People building a home with Pindan are being put in touch with insurers.