A major construction group has entered voluntarily administration with over 650 jobs now at risk. Kwikform, the Australian arm of Waco International, is one of the largest scaffolding and formwork providers in Australia.

Around 10 companies linked to Kwikform went into voluntary administration on Monday and Tuesday. The Sydney-based group traded as Waco Kwikform, Star Scaffolds and United Scaffolding Group and operates from 23 locations in Australia and New Zealand. Announcing the decision this week, management said they were forced by wider market conditions.

Administrators from McGrathNicol have been hired to manage the process, with the companies continuing to trade while options are explored. Damien Pasfield, Melissa Smith, Kare Johnstone and Jason Preston from McGrathNicol have been appointed as administrators.

They said in a statement: "Waco Australasia management has been actively pursuing concurrent sales processes for a number of business units in recent months.

"While these efforts were promising, current market conditions and delays in transaction timing have made the appointment of Administrators necessary to ensure there is sufficient runway to conclude the processes and maximise value for creditors."

Waco Kwikform has played a crucial role in massive projects including supplying scaffolding for infrastructure and events such as Formula One in Melbourne and hospital developments in New South Wales.

Other parts of the wider Waco International Group are not affected by the administration.

They are overseen by Waco International CEO Stephen Goodburn - aged 62, CFO Dharishan Padiachy - aged 39, and Waco Australasia CEO Michael Els - aged 58.

The group's latest decision has been motivated by the ongoing financial crisis, it has been reported. The latest account showed revenue of around $148 million (£110 million), alongside a loss of more than $10 million (£7.47 million), a sharp reversal from a profit the previous year.