Another builder, Oracle Platinum Homes, goes into liquidation
A Queensland residential building company has collapsed, leaving hundreds of customers and suppliers in limbo and owed millions of dollars.
Another building company has collapsed, with a Queensland residential builder set to leave hundreds of customers with unfinished homes and suppliers out of pocket.
The demise of Oracle Building Corporation, which trades under Oracle Platinum Homes, has left 300 homes unfinished across the country and owing $14 million.
Attempts to reach the company for comment were unsuccessful and its website has been closed down.
A notice posted on the Australian Securities and Investments Commission shows that William Cotter and William Robson from Robson Cotter Insolvency Group have been appointed as joint liquidators.
The building firm appears to have had money troubles for some time after reports emerged earlier this year that they were asking customers for more money to complete construction works.
Several weeks ago the embattled company told sub-contractors they would not be receiving outstanding payments.
Liquidators said company director Tom Orel was fully cooperating with them to maximise recoveries for creditors.
“Projects range from not yet commenced through to nearing completion,” they posted in a prepared statement.
“We understand that total creditor claims, including secured and unsecured, may be in the vicinity of $14 million.”
“Mr Orel has highlighted the well known difficult circumstances prevailing in the construction industry, including the recent and rapid rise in construction costs,” they said.
“These factors resulted in cost overruns and delays in project completions, which severely impacted the company’s cash flows and its capacity to continue to operate despite the owners and staff’s best endeavours.”
As its financial situation deteriorated, Oracle demanded up to $120,000 from some home builders before they could move into their homes, sparking a warning from the building watchdog to seek legal advice before paying any extra money.
Speaking to ABC Radio in Brisbane, Queensland Building and Construction Commission commissioner Anissa Levy acknowledged it was a very difficult time for home owners.
"What I can tell you is that there are 386 policy holders who have taken out policies with work being undertaken by Oracle Homes during the past two years," she said.
"We will be reaching out to each and every one of those policy holders to get in touch with them to offer them our assistance."
Frustrated customers posted comments on social media forums decrying the company’s collapse.
“What should have been Aidon and Kaylah’s dream experience of building their first home at the young of 21 has turned into a nightmare,” wrote Calli McCall.
“These guys worked their butts off and saved their deposit.
“For the last 20 months they have been patient with their builder.
“Since December 2021 nothing has been done on site and they are now left with a half-built frame.”
“We just lost our deposit,” wrote a poster identified as Urs Ula.
“Biggest nightmare of our lives dealing with this company, so much money lost, no compassion or understanding,” another post read.
Oracle joins a growing list of Queensland building firms hitting the wall in the past 12 months amid a growing crisis in the sector. Privium Homes, BA Murphy and Condev Construction are among those that have collapsed owing millions of dollars.
Nationally, the sector is struggling just as badly. At least 15 major builders have collapsed since November last year and there are fears many more may soon follow.
Other developers have had to cancel or put multi-million dollar projects on hold as the supply, inflation and labour issues wreak havoc with their budgets.
Regulatory body reacts