ABC presenter Lisa Millar has hired a “confident” building CEO who bragged that homeowners need not worry in the face of yet another construction company collapsing.
Queensland construction company Oracle Homes collapsed on Tuesday, leaving 300 homes unfinished, 70 employees losing their jobs and 200 owing suppliers.
Liquidators say claims could be in the neighborhood of $14 million, with families revealing how they have already pumped hundreds of thousands of dollars into their partially built dream homes.
Masters Builders Queensland CEO Paul Bidwell downplayed the situation on ABC’s breakfast show by saying consumers are protected by statutory home warranty insurance.
He even casually said he thought more bankruptcies were likely to follow.
As a major construction company collapses, Oractle Homes collapses, ABC host Lisa Millar (left) goes into ‘trust’ Master Builders Queensland CEO Paul Bidwell (right), who claimed homeowners have nothing to worry about
‘There have never been that many bankruptcies. To be honest, we thought there would be more,” he said.
“A lot of builders have talked about how heavy it is, and we thought there might be more than we’ve seen.
‘I am very pleasantly surprised about that. There will certainly be more, but we really have no idea how many.’
Mr Bidwill said consumer interests are protected and while he admitted there would be some pain, he insisted that homeowners “have a very safe safety net”.
His comments provoked a bewildered response from ABC presenter Millar, who replied, “They don’t feel that way right now. They’ve already had delays, they got emails that weren’t returned.
“The construction industry itself has been stretched so completely, as we’ve seen with these collapses happening in several states.
“So, to be honest, Paul, I’m a little surprised at your confidence that these people will be all right.”
Construction giant Oracle Building Corporation in Queensland has been liquidated, leaving up to 300 houses unfinished
Mr Bidwill assured that ‘it will be all right’.
“That’s what the Home Guarantee Insurance is for, Lisa,” he said.
‘So it takes longer, but the extra costs are covered, or should be covered by the Home Guarantee Insurance.’
He also noted that builders across the country are currently under pressure from external problems, such as the war in Ukraine, which is causing major supply problems such as processed lumber.
Builders in Queensland face financial ruin as supply stress engulfs the entire industry.
Oracle Homes is the last to be liquidated and its downfall is due to the rapid rise in costs and delays in securing materials and labor.
Oracle Homes liquidators say claims could be in the neighborhood of $14 million, with nearly 300 homes affected and about 70 employees losing their jobs
While on August 9, Brisbane-based Besse Construction also collapsed due to $1.7 million, leaving 30 people out of work.
Solido Builders Pty Ltd was liquidated in May and Pivotal Homes Pty Ltd in June.
The Victorian firms Wulfrun Constructions Pty Ltd were also liquidated in July.
Another Victorian builder, Waterford Homes, went bankrupt a week earlier, owing at least $600,000 to 60 different creditors.
The failed companies joined a string of builders that faltered this year.
Surfers Paradise builder Pivotal Homes, one of Queensland’s largest home builders, went bankrupt in May. Pictured is a stock photo of a man painting the side of a house
Construction giant Pro-build went bankrupt in March, owing more than $14 million to 784 workers, while Gold Coast-based Condev appointed liquidators weeks later, leaving creditors $31 million out of pocket.
Meanwhile, several other companies have been on the brink of collapse in recent months as economic problems ravage the industry.
Melbourne-based construction giant Metricon – one of the country’s largest companies – circulated rumors last month of problems following crisis talks with clients and a meeting with the Victoria Treasurer.
The owners have injected $30 million into the embattled company, although the bosses have denied that it is at risk of bankruptcy.
Michaela Lihou of the Masters Builders Association of Victoria, spoke about the crisis affecting construction in Australia.
“We have supply shortages, skills shortages and right now it’s a perfect storm,” she said.
The Victorian firms Wulfrun Constructions Pty Ltd were also liquidated in July. Another Victorian builder Waterford Homes went bankrupt a week earlier, owing at least $600,000 to 60 different creditors
Matthew Mackey, executive director of engineering firm Arcadis, said smaller companies are more likely to go bankrupt because they can’t absorb the cost increases like their larger counterparts.
‘Smaller companies don’t have the cash flow, they don’t have the same safety net,’ he explains.
“They will feel the pain much earlier and much more intense.”
Melbourne-based construction giant Metricon – one of the country’s largest companies – also sparked rumors last month of trouble following crisis talks with clients and a meeting with the Victoria Treasurer.