A contractor for Adelaide builder McCracken Homes said he had lost more than $50,000 because the builder stopped trading.
A spokesman for McCracken said it was facing difficult circumstances but was not yet ready to comment further.
Contractor, Justin, has about six employees and was involved in demolition and asbestos removal for McCracken Homes.
He said he was now selling assets, including cars and a property, at almost wholesale prices.
"Out of that 50-odd grand I reckon dump fees would probably be somewhere between 18 to 25 (thousand dollars), I have already paid it and this is the problem, we've already paid it and so I've been scratching around, you know, basically trying to cover my wages because I have to keep my name clean," he said.
"For myself, and also for the families of the guys that actually work for me, it's a really tough thing at the moment.
It's something like this, you know, you have all the assurances from these builders and they just turn around and turn a blind eye and just shaft you, it's just not fair." Robert Stewart of the Master Builders Association said the entire building industry was doing it tough and improvement seemed at least a year off.
"Whether it's commercial building or housing or the civil side of the industry, things are depressed," he said.
"When you see housing starts drop from 11,500 to about 6,800, there's less to go around for all the people competing for the work." The Opposition said it understood at least 13 jobs would be affected at McCracken, plus work for contractors.
Liquidation The administrator of an Adelaide plywood maker said it expected former employees would get their full entitlements in about four months.
A total of 47 workers lost their jobs when Brown Wood Panels at Camden Park in Adelaide went into administration last month.
Creditors now have voted to liquidate the company.
Administrator Tim Clifton said the former workers could expect to be paid in about 16 weeks.
"The only thing it doesn't cover is any unremitted superannuation but that's a very minor amount and we'll probably have the funds available to meet that," he said.
"That particular company was just in a situation where it just couldn't make any money, the margins were too tight and just in general manufacturing in Australia's doing it tough at the moment.
We're certainly reasonably busy at the moment."