The building industry is currently facing supply shortages which are affecting projects and contract prices.
Builders who go into voluntary administration, but not liquidation, may continue to provide services to clients. You should contact the administrators for further advice on whether they are likely to wind the business up or allow it to continue to trade.
The builder or the administrators may ask customers to agree to a contract price increase, and possibly other changes to contract terms, for their build to be completed. This may be requested as part of an offer for a deed of company arrangement.
Customers are not obliged to accept revised offers or vote for a deed of company arrangement. If you are in this situation, you should seek financial and legal advice before deciding.
We understand that customers of the Harmac Group, which went into voluntary administration on 22 August 2023, may have been asked to agree to an increase in the price of their domestic building contracts. This affects:
- Harmac Homes Pty Ltd ATF Harmac Homes Unit Trust
- Harmac Constructions Pty Ltd ATF Harmac Constructions Unit Trust
- Harmac Urban Living Pty Ltd ATF Harmac Urban Living Unit Trust
- Ridge Homes Pty Ltd ATF Ridge Homes Unit Trust.
The company's appointed administrator, Cor Cordis, has advice for Harmac Group customers.
Customers can also contact the administrator via email to firstname.lastname@example.org
For more information about negotiating with your builder, see Home-building projects.