ABC host Lisa Miller rips into a ‘confident’ building CEO Paul Bidwell bragging about the industry

ABC host Lisa Millar has laid into a ‘confident’ building CEO who bragged that homeowners have nothing to worry about in the light of yet another construction company collapsing.

Major Queensland construction company Oracle Homes collapsed on Tuesday, leaving 300 homes unfinished, 70 staff losing their jobs and 200 suppliers owed money.

Liquidators say claims may be in the vicinity of $14million, with families revealing how they’ve already pumped hundreds of thousands of dollars into their partiall-built dream homes.

CEO of Masters Builders Queensland, Paul Bidwell, downplayed the situation on ABC’s breakfast show saying consumers are protected by statutory home warranty insurance.

He even nonchalantly said he thought there would likely be more insolvencies to come.

‘There haven’t been that many insolvencies. To be honest, we thought there would be more,’ he said.

‘A lot of builders have been talking about how tough it is, and we thought there might have been more than we’ve seen.

‘I’m very pleasantly surprised at that. There will be others, for sure but we really don’t have a sense about how many.’

Mr Bidwill said consumers interests are protected and while admitting there would be some pain, insisted homeowners ‘do have a very secure safety net’.

His comments drew a baffled response from ABC host Millar who replied: ‘They’re not feeling that way at the moment. They’ve already had delays, they were having emails not returned.

‘The building industry itself is so completely stretched, as we’ve seen with these collapses happening in different states.

‘So, to be honest, Paul, I’m a bit surprised at your confidence that everything is gonna be okay for those people.’

Mr Bidwill assured that ‘it will be okay’.

‘That’s what the Home Warranty Insurance Scheme is there for, Lisa,’ he said.

‘So, it will take longer but the additional costs will be covered, or should be covered, by the Home Warranty Insurance.’

He also noted builders across the country are currently stretched due to external issues such as the Ukraine war causing major supply issues such as engineered wood.

Queensland builders facing financial ruin as supply stress sweeps the entire industry.

Oracle Homes is the latest to be liquidated, blaming its demise on the rapid increase in costs, and delays in securing materials and labour. 

While on August 9, Brisbane-based Besse Construction also collapsed owing $1.7million and leaving 30 people out of work.

Solido Builders Pty Ltd went into liquidation in May and Pivotal Homes Pty Ltd in June.

Victorian firms Wulfrun Constructions Pty Ltd also went into liquidation in July.

Another Victorian builder Waterford Homes went bust a week earlier, owing at least $600,000 to 60 different creditors.

The failed companies joined a string of builders who have faltered this year.

Construction giant Pro-build went under in March owing more than $14million to 784 workers, while Gold Coast-based Condev appointed liquidators weeks later leaving creditors out of pocket $31million.

Meanwhile, several other firms have spent the past few months teetering on the brink of collapse as economic issues wreak havoc on the industry.

Melbourne-based construction giant Metricon – one of the nation’s largest companies – last month sparked rumours it was trouble after holding crisis talks with clients and meeting with the Victoria Treasurer.

The owners injected $30million into the embattled company, although bosses have denied it is at risk of entering liquidation.

Michaela Lihou from the Masters Builders Association of Victoria, explained the crisis impacting construction in Australia.

‘We have got supply shortages, skills shortages and at the moment, it’s a perfect storm,’ she said.

Matthew Mackey, executive director of engineering company Arcadis, said smaller businesses are more likely to go broke because they can’t absorb the cost increases like their larger counterparts.

‘Smaller businesses don’t have the cash flow, they don’t have the same safety net,’ he explained.

‘They’re going to feel the pain a lot sooner and a lot more harshly.’