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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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Fears Melbourne building company Blint is on the brink of collapse

Fears Melbourne building company Blint is on the brink of collapse

A Melbourne builder has “disappeared” placing homeowners under a “horrendous” amount of stress as they are left with half finished homes they have poured hundreds of thousands into that they may struggle to complete.

One family impacted are Dean and Nolle Fuller, who have five children between them, and have already shelled out $480,000 to the builder called 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.

The slab for the two homes was laid and the first floor framing has been done on both but then work started to slow down in the middle of this year, according to Mr Fuller.

But the 54-year-old said alarm bells really started to sound when his wife drove past the site in the first week of June and discovered that the portaloo had been taken away and a tradition was on site collecting his materials.

She then went straight to the builder’s office only to discover it locked up, while her calls went unanswered.

Two days later on June 9, the owner of Blint told the Fullers he was going into voluntary administration but since then they have heard “nothing”, with emails and phone calls left unanswered and the office empty.

Building site targeted

Their building site has been broken into 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”.

“We have half a million dollars outlaid on something that is sitting still and… sitting on a block that is wasting away and not covered by insurance potentially,” he said.

“We are in a situation that we may be forced to compromise significantly on what was our dream home to build.

“We are financially impacted and may have sell off things to complete the build as there have been cost increases and delays. The property we have might have to be stripped right back to be rebuilt, notwithstanding that we have got to pay rent and that we have to be out of this rental by Christmas.”

left in limbo

Mr Fuller said his family would have to negotiate to stay in the rental meaning his, including three of their children, would be forced to be crammed into the small property for another 10 to 12 months.

I have added it’s been almost impossible to find out information when “all we want to do is build a house” and instead they are left in “limbo”.

“It takes a lot of time and hours with pursuing legal options and between the Housing Industry Association and banks and insurance companies it’s relentless,” I explained.

“We are all sitting on insurance policies but because the trigger is Blint going into voluntary administration, none of us can trigger the insurance policies. So we are sitting on property we can’t do anything with as we can’t engage new builders.”

Mr Fuller said it’s a “frustrating” experience and just wants answers from the builder.

Do you have a similar story? Contact [email protected]

Offices seized

Blint Builder’s office in the Melbourne suburb of Highett has also been 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.

Emails to Blint are undeliverable, while news.com.au has called, left voicemails and sent text messages to the builder but has not heard back.

‘Horrifying strain’

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 disability.

Mrs Firman has multiple sclerosis and the couple were building a home to meet her needs in the Melbourne suburb of Mordialloc, which included a swimming pool.

They had demolished the original home and signed up to build their $1.2 million house with Blint, which was scheduled to be finished in mid February.

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.

“There is no carpet, it hasn’t been painted and there are serious defects that need to be rectified, so there’s still quite a bit of work,” he claimed.

The 54-year-old said he even went to Blint’s office twice in June to find out about the progress of the home.

But since then the builder has “disappeared off the face of the Earth” with Mr Firman’s calls and emails going unanswered, he claimed

“It went from talking to him every day to him never ringing me back and never hearing from him,” he said.

Being left in limbo has taken a toll on him with the online retailer saying he has “never felt more depressed in my life”.

“It’s a massive strain on us as a family, both financially as we are paying rent as well as paying off part of the house that we can’t even live in it as we have no occupancy certificate,” he added.

‘Sending us broke’

Mr Firman said they can’t get a payout from the insurance company until Blint goes into liquidation and it could “cost a lot of money to force that to happen” through the courts.

“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,” he said.

“I fear that this will send us broke.

“It’s very touch and go for us at the moment … My daughter turns 21 next month and her only wish was to have the party at the new house and that won’t happen.”

‘Derelict sites’

Dad-of-three Jamie* had also signed up with Blint in March 2021 to renovate and extend their two bedroom house in the Melbourne suburb of Murrumbeena for $730,000.

The family had planned a double storey addition out the back with a new kitchen, living area and kids’ bedrooms and are currently living in a rental.

Jamie said the work was “slow going” and the family had forked out $600,000 so far.

Now they’ve been left with a half built home, even though it was due to be complete in April, and he describes the site as “quite derelict”.

Jamie confronted the builder at his home in June and was told Rodger Reidy had been appointed to handle the voluntary administrators.

But when he contacted the insolvency specialist firm he was told that it was not the case and Rodger Reidy also confirmed with news.com.au they had not been appointed.

Now, he can’t get in touch with Blint with the phone turned off and emails unanswered.

The 43-year-old said he just wants to be able to finish the home, even if it costs the family an extra $50,000, but he has been left in limbo, adding he is “exhausted and frustrated”.

News.com.au understands a number of suppliers are also owed money from Blint.

*Name changed for privacy reasons

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Sports

Michael Lichaa: NRL faces fresh calls to scrap no-fault stand-down rule

Michael Lichaa: NRL faces fresh calls to scrap no-fault stand-down rule

Rugby league’s no-fault stand-down rule has come under fire once again, with a lawyer for Michael Lichaa calling for it to be scrapped after it was revealed the ex-Bulldog was blocked from playing park football last year.

Mr Lichaa, 29, was forced to withdraw from the game he loves amid an 18-month legal battle to clear his name that culminated when a magistrate last week acquired him of domestic violence offences.

The former Lebanon international’s world was turned upside down in February last year when he was charged with a string of offenses after a late-night incident at his Connells Point home.

But it can now be revealed that Mr Lichaa was blocked from playing park footy after being charged when the NSWRL refused to register his contract.

The NRL in 2019 introduced its no-fault stand-down rule under which any player facing serious criminal charges, which carry a jail term of 11 years or more, is automatically sidelined.

The NSWRL adopted similar guidelines.

“The NSWRL did not register a contract for Michael Lichaa last season for bringing the game into disrepute after he was charged with several serious offences, including common assault and intimidation,” a NSWRL spokesman said.

“The NSWRL reviewed the situation this season and registered a contract for Lichaa.”

Mr Lichaa’s 113-game NRL career came to an end in 2019 when Canterbury did not offer him a contract for the following year.

He did not pick up a contract with a rival club and signed on to play for Cronulla Caringbah in the Sydney Shield in an effort to keep fit and in the hope of attracting a suitor.

However, his career was put on hold while he fought the charges after the NSWRL refused to register a contract.

Mr Lichaa was eventually found not guilty on Friday. His former partner of him declined to testify against him.

Mr Lichaa was acquitted of charges of common assault and intimidation, though he pleaded guilty to one charge of destruction of property after he punched a glass door.

The Sutherland Local Court was told last week that he had since retired from rugby league and was now working as a project manager.

Sam Saadat represented the former Cronulla and Canterbury hooker throughout the horror 18-month ordeal.

He said he understood the intent behind the no-fault rule but argued it hadn’t had the effect it was supposed to.

In the summer of 2018-19, the NRL was hit by a string of scandals – 17 incidents and allegations between September and mid-February – that prompted then ARLC chairman Peter Beattie to draft the rule.

But Mr Saadat, who is also heavily involved in rugby league and has coached at the Bulldogs and Sydney Roosters in the women’s and developmental ranks, said the rules needed a rethink.

“I understand where the NSWRL and NRL are coming from, but I think it needs to be revisited. If you look at the examples… almost every single one was acquitted,” he said.

“And as a result, if you look at the impact it’s had on their careers and mental health, I think the prejudice far outweighs the policy’s purpose.

“The game has a right to administer itself how it wants and the Federal Court found that when (Jack) de Belin challenged it. But I think they need to revisit that decision. We now have examples of where it hasn’t worked.”

Tristan Sailor, Dylan Walker and Tui Kamikamica were all stood down after being charged by police before either being found not guilty or having the charges dismissed.

De Belin did not play for the entirety of the 2019 and 2020 NRL seasons before he was allowed to return midway through last year when the Director of Public Prosecutions elected not to pursue a third sexual assault trial.

Two juries could not arrive at a verdict, though he and co-accused Callan Sinclair were found not guilty of one count following their second trial.

Manase Fainu is facing trial in the Parramatta District Court where he has pleaded not guilty to wounding with intent to cause grievous bodily harm and denied stabbing a church youth leader in the back.

Penrith’s Tyrone May was the only player stood down under the policy to be convicted.

May narrowly escaped jail after he pleaded guilty to four counts of intentionally recording an intimate image without consent.

Mr Saadat called for the NRL to hold a conference between players, administrators and lawyers to look at the policy.

“The game is supposed to be a reflection of society,” he said.

“Legally, everyone is entitled to the presumption of innocence.

“In this case even if it’s worded as a no-fault policy, it’s somewhat prejudicial. In people’s minds it creates an impression they must be guilty. I think it’s fundamentally unfair.”

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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.

*Name withheld for privacy reasons

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