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Melbourne construction company Blint Builders collapses owing $1m to 50 creditors

Melbourne construction company Blint Builders collapses owing $1m to 50 creditors

A Melbourne-based builder has collapsed with approximately $1 million in outstanding debt owed to 50 creditors, according to the liquidators.

The construction firm called Blint Builders went into voluntary liquidation after news.com.au revealed a number of homeowners were experiencing a “horrendous” amount of stress as they had poured hundreds of thousands of dollars into half finished homes that had sat untouched for months.

Cliff Sanderson from insolvency firm Dissolve has been appointed to handle Blint Builder’s liquidation.

He said Blint’s owner had told him that the company had “ceased to trade”.

“In our conversations with him, which are yet to be verified, he told us there are 50 creditors with approximately $1 million in debt and I expect that number to go up and the money will go up in excess of that,” he told news. com.au.

‘Horrifying strain’

Mr Sanderson said he was also told that “half a dozen” homeowners were impacted by Blint’s demise, but was waiting on more information to be supplied by the builder.

One family impacted are Dean and Nolle Fuller, who have five children between them, and have already shelled out $480,000 to Blint, since signing on in January.

The couple had demolished their existing home last November and had engaged Blint Builders to build two townhouses for $1.5 million, due to be delivered early next year.

No work has been done on the site since June and it has been broken into after construction stopped leaving it a “mess”, Mr Fuller said.

“In that time, we have had two lots of vandalizing and trespassing and damage caused to our property, which has been lodged with police,” Mr Fuller told news.com.au.

“We have had a truck back up and dump three to four square meters of rubble and waste material on the property and the truck also smashed the gates down.

“Recently someone turned up and stole the electrical meter box within the property.”

The project manager said the experience had caused an “unbelievable amount of stress and anxiety”.

Another family who are under “horrendous strain” are Tony and Jo Firman and their two children, who are building a home specially designed for her as she has multiple sclerosis.

The couple said they have paid $1.14 million so far to the builder and the house is at lock up stage but no work has happened since early June, according to Mr Firman.

“Even with the full insurance payout it might not be enough money. We skimped and saved and borrowed quite a substantial amount of money. We are worried we won’t make enough money to repay the loan and be able to live,” Mr Firman told news.com.au earlier this week.

Landlord owed $14k

Blint Builder’s office in the Melbourne suburb of Highett was also seized by the landlord.

Legal documents posted on the front door show the landlord has executed their right to re-entry, terminating the lease and demanding all property be removed and the keys be returned.

The legal notice also revealed that Blint Builders owe the landlord close to $14,000 in unpaid rent and rates.

Mr Sanderson said statistically it was rare for a dividend to be paid to unsecured creditors from a home builder as they “rarely have any assets”.

“Recently released ASIC corporate insolvency statistics reveal that the construction sector accounted for 28 per cent of all insolvencies for the June 2022 quarter,” he said.

“Construction is the largest sector in the statistics, second is accommodation and food with 16 per cent of the total, while 28 per cent is the highest ever percentage of total insolvencies for construction, equal with the December 2021 quarter.

“On average going back to 2013, construction makes up 19 per cent of total insolvencies.”

construction crisis

Overall, the construction industry has been plagued with a spate of collapses caused by a perfect storm of supply chain disruptions, skilled labor shortages, skyrocketing costs of materials and logistics, and extreme weather events.

Earlier this year, two major Australian construction companies, Gold Coast-based Condev and industry giant Probuild, went into liquidation.

Victorian construction companies have been particularly hard hit by the crisis.

Two building companies from Victoria were casualties of the crisis having gone into liquidation at the end of June, with one homeowner having forked out $300,000 for a now half-built house.

Then there have been smaller operators like Hotondo Homes Horsham, which was also based in Victoria and a franchisee of a national construction firm – which collapsed earlier this month affecting 11 homeowners with $1.2 million in outstanding debt.

It is the second Hotondo Homes franchisee to go under this year, with its Hobart branch collapsing in January owing $1.3 million to creditors, according to a report from liquidator Revive Financial.

Norris Construction Group, which was in Geelong, collapsed in March with $27 million in debt. It owes $3.2 million to around 140 staff that it is unlikely to be able to repay, according to the liquidator’s report.

Snowdon Developments was ordered into liquidation by the Supreme Court with 52 staff members, 550 homes and more than 250 creditors owed just under $18 million, although it was partially bought out less than 24 hours after going bust.

Others joined the list too including Inside Out Construction, Solido Builders, Waterford Homes, Affordable Modular Homes and Statement Builders.

The most recent collapse was NSW building company Willoughby Homes, which went into voluntary administration last week, leaving at least 30 homes in limbo.

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Metricon QLD GM Luke Fryer quits, national restructure update this week

Metricon QLD GM Luke Fryer quits, national restructure update this week

The Queensland general manager of troubled builder Metricon has resigned, days after the company announced around 225 staff would be sacked in a national restructure.

Luke Fryer, who had been with the company for 15 years starting as a sales estimator in 2007, was previously NSW GM before moving back to his home state of Queensland in 2020.

Metricon director Jason Biasin announced Mr Fryer’s resignation in an email to staff on Friday.

“The last two years have seen more challenges in our industry than ever before,” Mr Biasin wrote.

“Luke’s commitment to our people, to me personally and our business has been unwavering and will not be forgotten. We wish Luke all the best for the future and he will always remain a part of the Metricon family.”

He added, “I know this week has been very difficult for everyone and I thank you all for your professional and compassionate approach to the tasks at hand and looking after each other. I look forward to sharing more positive news with you next week.”

Metricon has been contacted for comment.

Last Monday, Metricon announced it would be shedding 9 per cent, or about 225 of its 2500-strong national workforce, in a restructure “to better accommodate and reflect the requirements of the current market“.

The affected roles are largely in sales and marketing.

The country’s largest home builder was plunged into crisis in May amid reports it was on the verge of financial ruin and engaging in crisis talks with the Victorian government, following the sudden death of its founder Mario Biasin.

Acting chief executive Peter Langfelder has repeatedly shot down those allegations, but a question mark still hangs over Metricon’s future despite the company’s directors injecting $30 million into its business to allay fears about its survival, and a rescue deal being struck with Commonwealth Bank.

Last month, Metricon listed nearly 60 display homes for sale across NSW, Queensland, South Australia and Victoria, worth a total of around $65 million.

Staff who were informed of the restructure during a Microsoft Teams meeting last week said those who had remained with the company rather than jumping ship “basically had the rug pulled out from under them”.

“It has not been received well by some of them,” one NSW staff member told news.com.au. “I’m a little bit burned by the whole situation.”

In a statement on Tuesday, Metricon confirmed it was in the “process of an internal restructure of the business, with an increased focus on delivering homes to more than 6000 Australians whose houses will be constructed this year”.

“To better accommodate and reflect the requirements of the current market and ensure the most appropriate deployment of resources, Metricon is working to appropriately reduce its sales and marketing capability while it focuses on the construction and delivery of more than 6000 homes,” a spokeswoman said .

“We have commenced a consultation process with our people. This process is proposed to lead to a reduction of personnel and redundancies across the national business.”

The spokeswoman said 2020 and 2021 saw record demand for homebuilding and that Metricon “expects demand to settle at pre-pandemic levels”. “As a result, the business will rebalance towards construction on homes it is currently building and the thousands more in the pipeline – the biggest volume in the company’s history,” she said.

The impacted roles will be at the “front-end of the business, predominantly in sales and marketing roles, representing approximately 9 per cent of the national workforce”.

“With the headwinds buffeting the industry, specifically labor costs due to competition for skills, combined with present global material cost hikes and with our very strong existing pipeline of work, we need to carefully balance the current pipeline of new builds with the construction side of the business,” Mr Langfelder said in the statement.

“We are working to restructure our front-end of the business given the current climate and the need to move forward efficiently. We are committed to looking after any of our people who may be impacted by these proposed changes, and they will continue to have ongoing access to the company’s support and mental health services.”

Mr Langfelder said Metricon was rebalancing the business’ focus over the next 18 months on executing builds as quickly and efficiently as possible whilst maintaining equilibrium in the pipeline.

“We have previously said that our company has a proven history of success and remains profitable and viable, with the full support of our key stakeholders – this remains the case today,” he said.

Mr Langfelder said Metricon was still expected to continue to contract on average 100 homes per week, in line with pre-pandemic levels. “Our future construction pipeline shows no sign of slowing down with more than 600 site-starts scheduled for 2023,” he said.

In an email to staff on Tuesday, Metricon said it would be holding a virtual town hall this week “to provide you with further updates on our business, current market conditions and plans for the future”.

“We do not underestimate the effect that this review is likely to have on some of you,” the directors wrote.

“We are committed to working through this process as thoroughly and efficiently as possible, and to keep you updated as we progress… Despite the current challenges across our industry, we remain stable as a business with full support from our key stakeholders.”

The Australian building industry has been plagued with escalating issues that have already seen Gold Coast-based Condev and industry giant Probuild enter into liquidation in recent months, while smaller operators like Hotondo Homes Hobart and Perth firms Home Innovation Builders and New Sensation Homes, as well as Sydney-based firm Next have also failed, leaving homeowners out of pocket and with unfinished houses.

The crisis is the result of a perfect storm of conditions hitting one after the other, including supply chain disruptions due largely to the pandemic and then the Russia-Ukraine conflict, followed by skilled labor shortages, skyrocketing costs of materials and logistics and extreme weather events .

The industry’s traditional reliance on fixed-price contracts has also seriously exacerbated the problem, with contracts signed months before a build gets underway, including the surging costs of essential materials such as timber and steel.

It comes after it recently emerged that Australia recorded a staggering 3917 liquidations or administration appointments across all industries during the 2021-22 financial year.

The construction sector led the charge, representing 28 per cent of all insolvencies, although firms from countless industries also failed in the face of soaring inflation and interest rate pressures, Covid chaos, labor shortages and supply chain disruptions.

There were 1536 collapses in NSW, with Victoria recording 1022, Queensland 665, WA 350, South Australia 196, 91 for the ACT, 29 for Tasmania and 28 in the Northern Territory.

[email protected]

— with Alexis Carey

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Qld Hutchinson building boss warns more construction companies will fold

Qld Hutchinson building boss warns more construction companies will fold

One of Australia’s biggest building bosses has issued a sober warning about the state of the construction industry with expectations many more businesses will collapse in coming months.

The chairman of Queensland construction company Hutchinson Builders, Scott Hutchinson, put it bluntly.

“I bet more builders go broke in Australia,” he told Australian Financial Review.

Mr Hutchinson blamed the way Australia’s construction system worked, with most of the onus placed on the builders themselves rather than developers.

He explained how developers tried to attract customers to their projects with competitive deals with little understanding of the very tight margins that builders had to fulfill to turn a profit.

Construction companies mostly have to oblige these developers as there is no shortage of builders but there are limited projects out there, Mr Hutchinson said.

Developers also can take on clients with very little financial stake while builders bore the brunt of the risk.

They [builders] will roll the dice with their fingers crossed every day of the week,” he said.

There’s no denying it, Australia’s building industry is in crisis; many companies have gone into liquidation so far this year amid rising costs for construction materials but also being stuck in fixed contracts, driving them out of business.

Two months ago, news.com.au spoke to Russ Stephens, co-founder of the Association of Professional Builders (APB), who warned that the industry was in dire straits with as much as 80 per cent of building firms haemorrhaging money.

More than half of the estimated 12,000 construction companies in the country are reportedly trading at a loss, with many on the brink of collapse.

And those who work in the industry are having regular mental breakdowns and crying to colleagues and family members as the pressure to survive mounts.

“[Building firms are] losing huge amounts of money,” Mr Stephens said.

“Eighty per cent of builders in Australia have lost money in the last 12 months. That’s horrific,” he said.

He said around 50 per cent of building companies wouldn’t be able to pay back all their debts at once if creditors asked for their money back at the same time.

“About 25 to 30 per cent [of these companies] can’t pay their bills on time,” he said.

An industry insider told news.com.au earlier this year that half of Australia’s building companies are on the brink of collapse as they trade insolvent.

Overall, the construction industry has been plagued with a spate of collapses caused by a perfect storm of supply chain disruptions, skilled labor shortages, skyrocketing costs of materials and logistics, and extreme weather events.

Earlier this year, two major Australian construction companies, Gold Coast-based Condev and industry giant Probuild, went into liquidation.

Victorian construction companies in particular have been hit hard.

Two building companies from Victoria were casualties of the crisis having gone into liquidation at the end of June, with one homeowner having forked out $300,000 for a now half-built house.

Then there have been smaller operators like Hotondo Homes Horsham, which was also based in Victoria and a franchisee of a national construction firm – which collapsed earlier this month affecting 11 homeowners with $1.2 million in outstanding debt.

It is the second Hotondo Homes franchisee to go under this year, with its Hobart branch collapsing in January owing $1.3 million to creditors, according to a report from liquidator Revive Financial.

Snowdon Developments was ordered into liquidation by the Supreme Court with 52 staff members, 550 homes and more than 250 creditors owed just under $18 million, although it was partially bought out less than 24 hours after going bust.

Others joined the list too including Inside Out Construction, Solido Builders, Waterford Homes, Affordable Modular Homes and Statement Builders.

The most recent collapse was NSW building company Willoughby Homes, which went into voluntary administration last week, leaving 44 homes in limbo.

News.com.au also raised questions about Sydney-based Ajit Constructions on Thursday after the builder hadn’t commenced construction for months, cleared up its offices without telling customers where it was going and disconnected its phone line.

There are between 10,000 to 12,000 residential building companies in Australia undertaking new homes or large renovation projects, a figure estimated by the APB.

A healthy construction industry is vital to a strong economy and ongoing growth, with the sector accounting for the employment of almost 9 per cent of Australian workers and 7.5 per cent of Australia’s GDP, according to CreditorWatch.

– with Sarah Sharples

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Geelong building company Norris Construction Group collapses owing $27m

Geelong building company Norris Construction Group collapses owing $27m

A collapsed Victorian construction company has $27 million in debt and owes $3.2 million to around 140 staff that it is unlikely to be able to repay, according to the liquidator’s report which revealed what went wrong.

The Geelong-based company called Norris Construction Group, which included seven associated companies, went under in March with KordaMentha appointed to handle the liquidation.

Its report, which was filed with the Australian Securities and Investments Commission, revealed the range of reasons for the company’s failure.

It included the “misprising of projects” and a “crisis of confidence” experienced by the business during lockdowns in Victoria between March and October 2020 resulting in projects being tendered at “very low prices”.

This resulted in “heavy losses” on a very large number of projects, the report to creditor’s said.

It also outlined “cultural issues amongst the executive team leading to staff losses and staff turnover” as well as hiring new staff on “high remuneration packages”.

The pandemic also contributed to the company’s demise, as well as “noncompliance” with lodging statements and returns with the ATO and unpaid taxes, alongside “insufficient working capital” to meet its short term obligations.

The company had completed work on the Manufutures hub at Deakin University and the Marngoneet and Chisholm Road prisons and worked across Melbourne and southwest Victoria.

Millions owed to employees

From the overall group, 235 former employees are owed $4 million in wages and entitlements but will have to rely on the federal government’s Fair Entitlements Guarantee (FEG) to get their money back.

However the scheme, which is available for employees of companies that become insolvent, caps back pay and does not pay superannuation.

Aside from the $3.2 million owed to employees of Norris Construction Group, there was between $187,000 and $277,000 owed to 235 staff from the overall group including wages, redundancy payouts and superannuation.

But KordaMentha partner Andrew Knight said four out of the five companies that employed staff had “insufficient” assets to pay back the money owed.

“We understand that for four of the five employing entities, FEG has processed and paid over 90 per cent of the employee claims,” he said.

“FEG is still working on claims in the fifth entity, Norris Construction Group, which are more complex due to the quantity of claims as well as the relevant Award which applies to these employees. We estimate the majority of these claims will be resolved and paid within the next month.

“Unfortunately, there are some entitlements that are not covered by FEG, for example superannuation and amounts in excess of caps, and payment of those are dependent on the outcome of the liquidations.”

While an auction of the company equipment and assets in May raised more than $17 million, and is expected to paid to Westpac, the bank will still suffer a “shortfall”, said Mr Knight as its owed $22 million.

The ATO also has an outstanding debt of $5 million, the report revealed.

However, the ATO debt was unlikely to be repaid, Mr Knight added.

“The amount due to the ATO is unsecured, and given the likely shortfall to the employees and the secured creditor, it’s unlikely unsecured creditors including the ATO will be paid a dividend,” he said.

The creditor’s report also flagged it was investigating any potential offenses of director’s duties including trading while insolvent.

construction crisis

Overall, the construction industry has been plagued with a spate of collapses caused by a perfect storm of supply chain disruptions, skilled labor shortages, skyrocketing costs of materials and logistics, and extreme weather events.

Earlier this year, two major Australian construction companies, Gold Coast-based Condev and industry giant Probuild, went into liquidation.

Victorian construction companies have been particularly sensitive to the crisis.

Two building companies from Victoria were casualties of the crisis having gone into liquidation at the end of June, with one homeowner having forked out $300,000 for a now half-built house.

Then there have been smaller operators like Hotondo Homes Horsham, which was also based in Victoria and a franchisee of a national construction firm – which collapsed earlier this month affecting 11 homeowners with $1.2 million in outstanding debt.

It is the second Hotondo Homes franchisee to go under this year, with its Hobart branch collapsing in January owing $1.3 million to creditors, according to a report from liquidator Revive Financial.

Snowdon Developments was ordered into liquidation by the Supreme Court with 52 staff members, 550 homes and more than 250 creditors owed just under $18 million, although it was partially bought out less than 24 hours after going bust.

Others joined the list too including Inside Out Construction, Solido Builders, Waterford Homes, Affordable Modular Homes and Statement Builders.

The most recent collapse was NSW building company Willoughby Homes, which went into voluntary administration last week, leaving at least 30 homes in limbo.

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Metricon sacks NSW sales staff via Microsoft Teams

Metricon sacks NSW sales staff via Microsoft Teams

Construction giant Metricon has unceremoniously sacked the majority of its NSW sales staff via Microsoft Teams in the latest sign that the struggling company is teetering on collapse.

David Shorten, Metricon’s NSW state sales manager, informed staff at the Monday morning meeting that numbers would be cut to just 18, from roughly 60 currently, with redundancy payouts offered to those unable to be redeployed.

About 15 trainee sales consultants have also been terminated with no offer of redeployment.

“To better accommodate and reflect the requirements of the current market and ensure the most appropriate deployment of resources, we have undertaken an important review of the sales team,” Mr Shorten said in a statement read out in the Teams meeting.

“This is necessary to ensure we remain competitive in both the short and long term. The review was not undertaken lightly and has resulted in proposed changes to the current structure of the team. We understand that you may feel anxious at this time and that you are likely to have a number of questions. Under the proposed structure, the number of new home advisors will be reduced to 18.”

The affected employees were given until midday on Wednesday to offer any “thoughts, insights or feedback you may have regarding the proposed structure and approach”, with employees to be told if they’re being sacked by the end of the week.

Mr Shorten said Metricon would “select the most appropriately skilled individuals to occupy the positions moving forward” but warned “options are limited” for redeployment.

“In the event that you were unable to be redeployed to a suitable alternative position within the notice period, you would receive the relevant redundancy entitlements if they were available to you,” he said.

Employees who are offered one of the remaining roles but choose not to accept may not be entitled to a redundancy payout.

One employee, who asked not to be identified, said he had been expecting the announcement after Metricon closed its HR portal last Friday.

He said there had been some staff turnover recently with “people abandoning ship to go to competitors”, and those who stayed “basically had the rug pulled out from under them” through “no fault of their own” after believing the company’s repeated public denials that it was facing difficulties.

“It has not been received well by some of them,” he told news.com.au. “I’m a little bit burned by the whole situation.”

The company’s largest home builder was plunged into crisis in May amid reports it was on the verge of financial ruin and engaging in crisis talks with the Victorian government, following the sudden death of its founder Mario Biasin.

Acting chief executive Peter Langfelder has repeatedly shot down those allegations, but a question mark still hangs over Metricon’s future despite the company’s directors injecting $30 million into its business to allay fears about its survival, and a rescue deal being struck with Commonwealth Bank.

Last month, Metricon listed nearly 60 display homes for sale across NSW, Queensland, South Australia and Victoria, worth a total of around $65 million.

The Sydney employee said “events have snowballed” since Mr Biasin’s death, adding he was skeptical the company could survive.

“We still don’t have homeowners’ warranty insurance,” he said.

“We have not been taking deposits for the last 10 weeks. It should be known. People are still waiting for builds. I’m glad we haven’t been able to take deposits – do you want to be the guy that takes someone’s $20,000, $30,000 life savings and the company goes bankrupt in three or four weeks’ time?”

Reached for comment on Tuesday, Metricon confirmed it was “process of an internal restructure of the business, with an increased focus on delivering homes to more than 6000 Australians whose houses will be constructed this year”.

“To better accommodate and reflect the requirements of the current market and ensure the most appropriate deployment of resources, Metricon is working to appropriately reduce its sales and marketing capability while it focuses on the construction and delivery of more than 6000 homes,” a spokeswoman said in a statement to news.com.au.

“We have commenced a consultation process with our people. This process is proposed to lead to a reduction of personnel and redundancies across the national business.”

The spokeswoman said 2020 and 2021 saw record demand for homebuilding and that Metricon “expects demand to settle at pre-pandemic levels”. “As a result, the business will rebalance towards construction on homes it is currently building and the thousands more in the pipeline – the biggest volume in the company’s history,” she said.

The impacted roles will be at the “front-end of the business, predominantly in sales and marketing roles, representing approximately 9 per cent of the national workforce”.

“With the headwinds buffeting the industry, specifically labor costs due to competition for skills, combined with present global material cost hikes and with our very strong existing pipeline of work, we need to carefully balance the current pipeline of new builds with the construction side of the business,” Mr Langfelder said in the statement.

“We are working to restructure our front-end of the business given the current climate and the need to move forward efficiently. We are committed to looking after any of our people who may be impacted by these proposed changes, and they will continue to have ongoing access to the company’s support and mental health services.”

Mr Langfelder said Metricon was rebalancing the business’ focus over the next 18 months on executing builds as quickly and efficiently as possible whilst maintaining equilibrium in the pipeline.

“We have previously said that our company has a proven history of success and remains profitable and viable, with the full support of our key stakeholders – this remains the case today,” he said.

Mr Langfelder said Metricon was still expected to continue to contract on average 100 homes per week, in line with pre-pandemic levels. “Our future construction pipeline shows no sign of slowing down with more than 600 site-starts scheduled for 2023,” he said.

The spokeswoman did not address the claim that Metricon was not taking deposits.

The Australian building industry has been plagued with escalating issues that have already seen Gold Coast-based Condev and industry giant Probuild enter into liquidation in recent months, while smaller operators like Hotondo Homes Hobart and Perth firms Home Innovation Builders and New Sensation Homes, as well as Sydney-based firm Next have also failed, leaving homeowners out of pocket and with unfinished houses.

The crisis is the result of a perfect storm of conditions hitting one after the other, including supply chain disruptions due largely to the pandemic and then the Russia-Ukraine conflict, followed by skilled labor shortages, skyrocketing costs of materials and logistics and extreme weather events .

The industry’s traditional reliance on fixed-price contracts has also seriously exacerbated the problem, with contracts signed months before a build gets underway, including the surging costs of essential materials such as timber and steel.

It comes after it recently emerged that Australia recorded a staggering 3917 liquidations or administration appointments across all industries during the 2021-22 financial year.

The construction sector led the charge, representing 28 per cent of all insolvencies, although firms from countless industries also failed in the face of soaring inflation and interest rate pressures, Covid chaos, labor shortages and supply chain disruptions.

There were 1536 collapses in NSW, with Victoria recording 1022, Queensland 665, WA 350, South Australia 196, 91 for the ACT, 29 for Tasmania and 28 in the Northern Territory.

According to consumer credit reporting agency Equifax, “small-scale operators in Australia’s construction industry could well be the canary in the coal mine for the difficulties that lie ahead for this sector”.

The company late last month claimed that “the significant increase in construction company failures since the start of the year shows no sign of abating”, with provisional data indicating that construction insolvencies increased 19 per cent for the month of May, sitting 43 per cent higher than May 2021.

Overall, construction insolvencies have increased 30 per cent over the last 12 months, according to Equifax.

[email protected] with Alexis Carey

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Egg shortage: Latest product to vanish from supermarket shelves

Egg shortage: Latest product to vanish from supermarket shelves

Australians are being hit with a national egg shortage, as consumers move towards free-range eggs amid rising production costs, extreme weather events and worker shortages.

Supermarkets across the country are back to implementing purchase limits, with farmers grappling to keep up with demand after they decreased their chicken numbers during lockdown.

Owner of Chooks at the Rooke, a free-range egg farm southwest of Melbourne, Xavier Prime told 3AW Radio that part of the problem was the cold weather that affected how often the birds laid eggs.

“Part of it is the time of the year as well.” he said.

“Free-range eggs, in that sort of space the birds are open to the elements, and with the daylight hours being shorter, that has a lot to do with how many eggs the chickens lay.”

Mr Prime said “to lay the optimum”, hens needs 15-16 hours of daylight every day, but at the moment they are experiencing just 10-11 hours.

A Woolworths spokesman said the scarcity of eggs was due to a production shortage on farms, with the cost of young hens laying eggs increasing by 20 per cent.

“The market-wide supply of locally produced eggs in some regions has recently been impacted by reduced production on a number of farms,” they said.

“While we continue to deliver eggs to our stores regularly, customers may notice reduced availability at the moment and we thank them for their patience and understanding.

“We’re in close contact with our suppliers and are working to increase the availability of eggs in stores as soon as possible.”

The supermarket giant has installed a two-carton limit in some stores.

Mr Prime said he hoped the supply shortages did not push consumers back to caged eggs.

But free-range eggs aren’t the only product Australian shoppers are being stripped of, with supermarkets reporting bare shelves for other household items such as chickpeas, lentils, lettuce, tissues and cold and flu tablets.

“We’re experiencing reduced availability across some of our lentil and chickpea products due to supply chain delays,” a Woolworths spokesman said.

The supply chain issues are a combination of the war in Ukraine, flooding and other extreme weather events on Australian shores.

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Developer Cedar Woods shelves Brisbane townhouse project leaving homeowners ‘screwed’

Developer Cedar Woods shelves Brisbane townhouse project leaving homeowners 'screwed'

A homeowner who bought into an off-the-plan development in Brisbane, which has now been shelved, has described the development company’s decision as an “absolute joke” claiming that it would leave his family financially “screwed”.

Chris* signed up to buy an $800,000 townhouse last year in the $180 million development called Greville, in the northern suburb of Wooloowin, and was scheduled to move into the new home with his partner and daughter in 2023.

The project was set to deliver around 250 homes, a recreation zone and pool, as well as a community park, and had originally been marketed as an urban village just 5km north of Brisbane’s CBD.

Now, the family has been left angry and upset after Perth-based developer Cedar Woods announced it was delaying the project, blaming rising costs, labor shortages, significant rainfall events in Queensland and extended construction timelines.

Buyers have been given the option to have their deposits refunded and will be offered the first choice when the project is remarketed, according to the developer, which it said hoped would be in the second half of next year.

But Chris claims they are “stuck in no man’s land” because the developer doesn’t have a clause in which they can cancel the contract, a claim Cedar Woods would not comment on.

In a letter to buyers, Cedar Woods proposed that both the developers and buyers agree to “a mutual termination of the contract” as the project would be “indefinitely delayed”.

But so far the family says it has refused to accept the return of their deposit, nor had any responses to other inquiries.

“There’s never been any consultation whatsoever. There was a post on Facebook in April about how they would start (construction), but then the post was deleted and we got phone calls saying everything was cancelled,” Chris told news.com.au.

“Financially, we have been really screwed by Cedar Woods’ decision because now the property prices are still up and we personally don’t think they are going to fail as much as speculators say. Add this to the pressures due to the cost of living going up and interest rates going up, greatly limit our choices.

“We have been looking at similar places and we are not going to get anything for under $1 million for the area.

“We tried to put an offer on a development of four townhouses and the real estate agent basically laughed at us as they are after the mid-$1 million mark for a place with the same square meterage and floor plan similar to what we had bought. ”

Cedar Woods did not respond to a news.com.au’s question on whether the townhouses and apartments would be sold at a higher price once the project was relaunched.

A post on its official Greville Facebook page back in April that said works were under way has now been deleted, but homeowners were left blindsided when the project was shelved just a month later.

“Construction is off to a great start in 2022,” the now deleted post read.

“Despite the weather in southeast Queensland, we are happy to share that civil works on the site are partially complete and construction will begin shortly. It is an exciting time for Greville and we are excited to show you what is to come.”

Chris, who works as a project manager, added that communication had been poor and the couple were “most peeved” that there was “no real consultation” by the company about the decision to shelve the project.

“This decision has majorly impacted people’s lives and they just don’t seem to care,” he said.

Cedar Woods managing director Nathan Blackburne said the firm’s decision was extremely difficult, but it was the right decision in an environment where builders were facing additional risks.

“We know purchasers are disappointed and (we) have apologized to them. We greatly appreciate the understanding of our purchasers who in the main are aware of the current conditions,” he said.

Extended construction time frames and increased costs had meant that the particular stages could not proceed as completion wasn’t possible by specified completion time frames, I added.

“Cedar Woods has continued to engage with the affected purchasers and provide opportunities for further discussion while prioritizing the return of their deposit,” he said.

“The company hopes to re-engage with them when conditions in the sector are expected to improve over financial year 2023.”

But for Chris and his partner, who are in their mid-30s, their “huge” excitement about owning the townhouse has turned into a nightmare.

“We are tossing up if we have to move further out of town away from family, friends, work and childcare, which would make life more inconvenient, but that’s one of the only options we have,” he said.

“Cedar Woods made a decision to protect shareholders and their bottom line as they are a business and I get that, but the impact that it will have on our family and other families out there is not insignificant.”

Meanwhile, work is still continuing on the project site, which has left buyers furious with many lashing out at the developer on Facebook.

“Cedar Woods is continuing to finalize all of the civil construction, remediation work of the historical laundry and the delivery of the community park in preparation for the project to come back to market,” Mr Blackburne said of the continued works.

Australia’s construction crisis

It’s not the first project to be suffered this month in Australia’s embattled construction industry.

Perth developer Sirona Urban killed off a $165 million luxury tower, where more than 50 per cent of apartments had been bought off the plan, blaming skyrocketing construction costs and shortages.

Owner Matthew McNeilly said construction costs had risen by 30 per cent in the past 10 months.

Then there was a Melbourne developer that abandoned plans to build a $500 million apartment tower on the Gold Coast, blaming the crisis in the building industry and surging construction costs for making the project unprofitable.

The development by Central Equity was set to kick off this year featuring 486 apartments in a 56-storey tower, known as Pacific One, and was due to be built on a beachfront block in Surfers Paradise.

Apartments had been sold with a starting price from $650,000 each.

Overall, the construction industry has been plagued with a spate of collapses caused by a perfect storm of supply chain disruptions, skilled labor shortages, skyrocketing costs of materials and logistics, and extreme weather events.

Earlier this year, two major Australian construction companies, Gold Coast-based Condev and industry giant Probuild, went into liquidation.

Then there have been smaller operators like Hotondo Homes Horsham – a franchisee of a national construction firm – which collapsed earlier this month affecting 11 homeowners with $1.2 million in outstanding debt.

It is the second Hotondo Homes franchisee to go under this year, with its Hobart branch collapsing in January owing $1.3 million to creditors, according to a report from liquidator Revive Financial.

Snowdon Developments was ordered into liquidation by the Supreme Court with 52 staff members, 550 homes and more than 250 creditors owed just under $18 million, although it was partially bought out less than 24 hours after going bust.

Others joined the list too including Inside Out Construction, Solido Builders, Waterford Homes, Affordable Modular Homes and Statement Builders.

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