John Tookey: AUT Construction Management professor on Auckland-based Scarbro Construction entering liquidation - Heather du Plessis-Allan Drive

Auckland-based Scarbro Construction has today declared insolvency and called in liquidators.

The building company has stopped work on five active construction sites- and experts warn this won't be the only construction business in trouble this year.

AUT Construction Management professor John Tookey wasn't expecting Scarbro to dissolve, but says that any construction company can go belly-up.

John Tookey says Scarbro's liquidation has likely come down to a cash flow crisis generated by a contract or sub-contract going wrong.

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