Queensland’s building watchdog stepped in to help affected customers following a homebuilder’s collapse, while hundreds of Australian homeowners said their homes would not be completed soon. less likely to see
Oracle Homes went into liquidation on August 24, putting about 70 staff out of work and suspending construction work on 300 homes.
Robson Cotter Insolvency Group, which has been appointed liquidator, said Oracle’s debt could reach $14 million (US$9.7 million).
Queensland Prime Minister Anastasia Parašchuk said the collapse had caused serious concern for construction companies and urged residents of the state to exercise caution and seek advice before committing to contractors.
“There are big problems with setting up companies across the country in relation to rising supply costs. This is nothing new,” the prime minister told reporters.
“But people are putting all of their savings into a home.
“I think it’s very important that people get used to the contracts they’re entering into.”
The Queensland Building and Construction Commission (QBCC) said it has reached out to 386 policyholders who have been insured with Oracle over the past two years and is assisting them in filing claims.
“QBCC knows that if a construction company goes bankrupt, it could have a material impact on everyone who did business with that company,” the regulator said in a statement obtained by AAP.
“Therefore, QBCC has set up a dedicated team to handle unfinished claims from homeowners affected by this event. I will do everything I can to
Long wait times for affected homeowners
Queenland’s compulsory home warranty insurance scheme will cover up to $200,000 for each customer in the affected state, said Paul Bidwell, chief executive of Master Builders Queensland. Nonetheless, he said months of delays awaited Oracle customers.
“There will be some pain, but eventually they will have their home built.” Bidwell said ABC news. “But that doesn’t mean it’s going to be fun for those homeowners during the process.
Oracle is the latest homebuilder to go bankrupt in Queensland, but Master Builders expects more to follow in its footsteps this year.
In addition, Bidwell said many builders are looking to deal with future changes in building material prices, which have skyrocketed over the past few years due to supply chain disruptions caused by the COVID-19 pandemic and the war in Ukraine. , said it was adding contingencies to the contract.
He also said the sector is facing a labor shortage due to a period of low interest rates and increased demand for new homes after recent natural disasters.
“To have a storm of perfect conditions like this means we don’t have the people and materials to build,” Bidwell said.
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Alfred Bui is an Australian reporter based in Melbourne, focusing on local and business news. He is a former small business owner and holds his two master’s degrees in business and business law. Please contact [email protected]