Wed. Sep 20th, 2023
    South Australian Building Companies Collapse, Raising Concerns for Consumers and Industry

    Rick Brook and around 200 other homeowners in Adelaide’s north-west are facing uncertainty as their homes remain partially built due to the collapse of their builder.

    This latest collapse marks the third time a building company in South Australia has entered liquidation in recent months, following Felmeri Homes and 7 Star Construction.

    Brook expressed his empathy for the employees and tradespeople affected by the company collapses, noting the financial impact it will have on him personally.

    While the state government and the Housing Industry Association (HIA) believe the worst is over for the industry, discussions are underway to determine what improvements can be made to protect consumers and prevent future company collapses.

    Building inspector Mike Pearl highlighted the challenges faced by builders due to fixed price contracts and supply issues causing price increases since the start of the pandemic.

    Minister for Consumer and Business Affairs, Andrea Michaels, stated that historical problems were easing, and Consumer and Business Services had been meeting with builders to address increasing complaints.

    Consumers in South Australia are predominantly reliant on word-of-mouth recommendations when choosing a builder, despite the availability of information on the state government’s Consumer and Business Services website.

    Stephen Knight from the HIA suggested consumers obtain multiple quotes and conduct thorough due diligence, including verifying a builder’s building indemnity insurance.

    As the industry and government work together to protect consumers and restore confidence in the building sector, affected homeowners like Brook hope for changes that will prevent future collapses and safeguard the industry.

    Sources: ABC News