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Category: Urban Development and Planning / States and Territories / Building and Construction

Canberra building company goes into administration leaving clients in lurch

Wednesday, 23 Nov 2016 03:04:50

Today's Homes is currently building houses for at least 15 customers. (Supplied)

A large Canberra building company has gone into voluntary administration, leaving clients and subcontractors in limbo.

Today's Homes and Lifestyle specialised in local residential construction and development.

The Fyshwick company is believed to be currently building homes for at least 15 customers.

But many more subcontractors are believed to have been affected by the company entering administration.

One plastering subcontractor told 666 ABC Canberra he is owed $170,000 by the beleaguered company.

Master Builders Association of the ACT (MBA) executive director Kirk Coningham said the situation could be disastrous for a subcontractor.

"It's devastating for these small companies, it depends on the scale of course, but that type of debt can devastate a business in our industry in the ACT," he said.

"We're madly calling around to see if we can identify subcontractors caught up and try to find out how we may be able to help them."

Mr Coningham said he hoped compulsory home warranty insurance would allow unfinished houses to be completed.

He said Master Builders ACT would rally the industry to finish incomplete homes for clients, though their success would depend what stage of construction those houses were in.

"It's inevitable that there will be some kind of delay now too, which is incredibly frustrating for people, particularly if you were looking to move in for Christmas," he said.

"Good companies do go broke in our industry. The responsibility for us now is to minimise the harm that's done, particularly to people who have entered into contracts in good faith.

"The next step is waiting for the administrator to do their work in the next few days and then we'll see what we can do to ease the pain a bit."

Mr Coningham denied the incident pointed to the need for tighter regulation into the building industry, saying current checks and balances were working effectively.

AustraliaPlus


 

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