Another construction company has gone bankrupt, leaving customers in limbo with unfinished homes.
The third GJ Gardner Homes franchise, managed by LV Built in Tasmania, went into liquidation and closed on April 2.
“The situation with the former GJ Gardner Hobart West franchise is very unfortunate for all involved,” CEO of GJ Gardner Homes told News.com.au.
“At this time, our primary focus is on affected customers and their homes. We have started working with the appointed liquidator and are speaking to each client to better assess the situation and their individual circumstances.”
The news comes after two other GJ Gardner franchises went bankrupt last year.
A franchisee in Springfield, Queensland declared itself bankrupt and a Perth West franchise went bankrupt.
Their demise is part of a worrying trend in Australia, where more than 2,000 construction companies went bankrupt in the 2022-2023 financial year due to labor shortages and the rising costs of construction materials, energy and fuel.
The third GJ Gardner Homes franchise, operated by LV Built in Tasmania, went into liquidation and closed on April 2
The problems were piling up long before the Hobart West franchise announced it was going bankrupt.
Construction defects, approved plans that were not adhered to, near-complete work stoppages, contractors claiming money was owed, and completed homes that still require months of expensive repairs.
Customers had been asking GJ Gardner Australia to do something for more than a year, but the franchisee was allowed to continue operating.
Customer Akinola Ekundayo signed a contract with LV Built in August 2021, but thought it was GJ Gardner.
Work had started in July 2023 but stopped when a downpour in October caused one of their retaining walls to partially collapse.
LV Built attempted to repair the wall, but a building inspector ordered the city to stop work.
‘It looks deserted, my site is deserted. Nothing is happening here,” Mr Ekundayo said.
Their demise is part of a worrying trend in Australia, with more than 2,000 construction companies failing in the 2022-2023 financial year due to labor shortages and rising costs of construction materials, energy and fuel. (Image: GJ Gardner Homes house plan)
Despite the family complaining to GJ Gardner, nothing has been done to repair the structure.
‘LV Built trading as GJ Gardner Hobart is your builder, not GJ Gardner Australia. We cannot build for you, nor take over construction from Ludek… at LV Built,” GJ Gardner reportedly told the Ekundayos in an email.
Owen Knight, another customer, said he immediately noticed problems with his Huon Valley build and said part of the slab was ‘missing’.
Mr Knight said this was just one of several structural problems, including an incorrect roof pitch, a broken moisture loop in the garage and blocked floor debris.
Another customer, who wished to remain anonymous, said they were also having problems with the corners of their slab missing.
When their home was completed early, they were shocked to discover missing pipes and many other things incomplete.
Their fears were confirmed when an independent building inspector found nearly fifty pages of substandard and incomplete work.
GJ Gardner said it will help find new builders for customers so their homes can be finished
The Hobart franchise still has 30 homes under construction and trustee Rodgers Reidy is contacting every client and subcontractor.
Meanwhile, GJ Gardner Homes said it will help customers find new local builders.
The nationally recognized housebuilder said it was acting slowly due to ‘difficult trading conditions’.
GJ Gardner said that once they were aware of the issues, they provided support and ‘guidance’ to help the franchisee with its ‘operations and finances’.
GJ Gardener will not renew its contract with LV Built when it expires later this year.
Daily Mail Australia contacted GJ Gardner Homes for comment.