Perth homebuilder goes bankrupt
The company’s website is down, but archived pages include a blog post from February indicating that the company had hired additional support staff and created its own team of masons to deal with its workload.
“With supply chain issues and border restrictions, it’s fair to say WA builders have had to adapt (or crash)!” he said.
“Although we cannot predict these effects, we have certainly found ways to circumvent them and continue to build sensational homes for families in Perth.”
A client of New Sensation Homes, who did not wish to be named, said she had difficulty getting in touch with the builder recently and that there was still work to be done to complete her home.
“Over the past two weeks, emails have been coming back saying that due to COVID understaffing, they’re out and will get back to me,” she said.
“My house needs a garage door, driveway paving, outdoor paving and some indoor outlets and that’s it.
“I started this process in November 2020 and was told I would be in the house in December 2021.
“I’m at the point where I don’t even want the house anymore and any excitement I had about building my house is gone.”
Affected customers have been urged to contact liquidator WA Insolvency Solutions which took over the business on Friday.
WAIS managing partner Jimmy Trpcevski said he understands this is a difficult time for everyone affected by the company’s collapse and that the liquidator will liaise with affected parties in the coming days.
Builders face a cost crisis
Master Builders Association of WA executive director John Gelavis said Australian businesses were facing a cost and cash flow crisis that was forcing them to stay afloat.
He said cost increases had been significant, in the range of 30-40%, as global and domestic supply chains faced several challenges.
A new tariff on engineered wood products from Russia, due to the war with Ukraine, is one of the latest challenges facing the industry, according to Gelavis.
Delays in delivering materials due to shortages and high costs mean builders may struggle to meet the milestone payments needed to keep them in business.
“With these delays and prices that cannot be passed on, it creates this crisis,” Gelavis said.
“These cost increases … are rare under normal market conditions.
“These are not normal increases, these are significant double-digit increases.
“The federal government needs to adopt policies that help small businesses.
Mr Gelavis said there was still a shortage of skilled labor in the construction sector as he called for more skilled migration and an end to the vaccination mandate for workers to solve the problem .
He said customers should try to stay in touch with their builder and understand the pressures they face.
“Builders don’t want to take longer than necessary to build homes,” Gelavis said.
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