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A family’s dream home remains half-finished after a construction company went bankrupt.
Kelly and Tony Sharples broke ground on their dream at Kembla Grange, south of Sydney, in mid-2021 and were told it would be finished in December of the following year, just in time for Christmas.
But when they went to check the property just before the expected completion date, they found a sheet of A4 paper taped to the front door explaining that its builder, Elderton Homes, had filed for bankruptcy.
Kelly and Tony Sharples broke ground on their dream at Kembla Grange, south of Sydney, in mid-2021 and were told it would be finished in December of the following year, just in time for Christmas.
Although the main structure of the house has been erected, many of the interior rooms remain incomplete, with loose tiles not yet secured.
Carpet has been installed in the family home, but the plumbing is still a work in progress, with some fixtures not yet installed properly.
Although the main structure of the house has been erected, many of the interior rooms remain incomplete.
The tile in the bathroom had not yet been completed and the cabinets were also waiting to be placed correctly.
Carpet has been installed in the family home, but the plumbing is still a work in progress.
Elderton Homes went into voluntary administration on December 12, leaving a long list of clients in the lurch.
The boutique builder said the “difficult decision was the result of a number of factors”, citing bushfires and floods, the Covid pandemic and the economic downturn.
“The construction industry has been subject to record levels of rainfall, substantial price increases in building materials, supply chain challenges and labor shortages,” Elderton management said in a statement.
The Sharples say they have been given little information about what will happen to their half-finished home and have been met with “every excuse under the sun” as to why it hasn’t been completed yet.
“Obviously we’ve had a bit of wet weather, but there were houses all around us that were being built in the same conditions and they were being finished,” Sharples told the Illawarra Mercury.
We were the last ones left.
Now the couple with three children are at the mercy of Elderton Homes manager O’Brien Palmer, who in January released a report detailing the company’s dire state.
The couple with three children are at the mercy of Elderton Homes manager O’Brien Palmer, who in January released a report detailing the company’s dire state.
At the time the company went into administration they had 75 houses at various building sites in Greater Sydney, the Central Coast and the Illawarra region.
At the time the company went into administration they had 75 houses at various building sites in Greater Sydney, the Central Coast and the Illawarra region.
They also had 127 new projects in the pipeline despite administrators saying the company could not pay its debts since June 30 last year.
As a result of the administrator’s findings, Elderton owner and director Richard Whitehead could face criminal sanctions.
O’Brien Palmer disclosed that Mr. Whitehead deposited $1.7 million into the Elderton Homes accounts on December 1, 2021, and on the same day paid $1.706 million, with the description “Spec Home and Land.”
“We have searched for information on this payment and are waiting to receive a response,” the administrators said.
The Sharples are now left waiting for the company to be wound up, releasing them from their construction contract with Elderton Homes, allowing them to file a claim under the NSW Home Builders Compensation Fund and find a new builder.
However, until a decision is made on Elderton Homes, the future owners are bound by contract and have no choice but to wait.
Elderton Homes went into voluntary administration on December 12, leaving a long list of clients in the lurch
Elderton Homes also had 127 new projects in the pipeline despite administrators saying the company could not pay its debts since June 30 last year.
Voluntary management results in managers evaluating whether the company can turn its fortunes around and get out of financial trouble.
If this is not deemed feasible, the company will be wound up.
Elderton Homes is far from the only construction company to go bankrupt in recent years.
The construction industry’s problems stem from construction materials supply chain problems combined with low stocks from domestic and international sources.
This caused an increase in demand for the remaining stock and price increases, with builders bearing the brunt.
The costs of metal ores, plastics and wood have risen steadily for years, particularly due to the Covid shutdowns as factories were forced to close for extended periods.
Construction sites have also had to shut down for weeks or months and this, combined with weather events like wildfires or floods, has thrown projects off schedules and pipelines.
Trade costs have also risen due to labor shortages and less competition, with a recent report from the Housing Industry Association finding that costs for masons rose 16.4%, carpenters 12.5% and painters 12.2% since 2020.