Adelaide builder Fenbreeze Homes leaves at least 50 customers with incomplete homes

CLOSE to 50 homeowners affected by the collapse of an SA builder have contacted the consumer watchdog since it issued a public warning against the company and its director.

At least 50 homeowners have been left with incomplete homes, and in some cases uninsured, following the collapse of Fenbreeze Homes. FILE PICTURE

• Builder Fenbreeze Homes stripped of licence

CLOSE to 50 homeowners affected by the collapse of an SA builder have contacted the consumer watchdog since it issued a public warning against the company and its director.

Fenbreeze Homes was placed into liquidation last month after the company and its director Joseph Biju Kavilpurayidathil allegedly accepted payment for services they failed to deliver, and provided fake building indemnity insurance certificates to a number of clients.

The Ferryden Park home builder has been stripped of its building licence.

Approximately 10 of the 50 homeowners who have reported their cases to Consumer and Business Services were issued fake insurance certificates, but that number is likely to rise as investigations continue.

Consumer and Business Services Commissioner Dini Soulio said his team was working with SA Police to investigate the matter, and to determine whether any financial assistance would be offered to affected homeowners.

“Consumer and Business Services continues to encourage people to check their indemnity insurance certificates to ensure they are valid,” he said.

“This can be done by contacting the insurance firm to verify its validity.”

Building indemnity insurance protects homeowners when work has not been completed in the event the builder dies, disappears or becomes insolvent.

Under the Building Work Contractors Act, a builder must have an insurance policy in place for any domestic building work costing $12,000 or more where council approval is required.

Failure to do so attracts a maximum fine of $20,000 and builders may face prosecution and disciplinary action.

Homeowners affected by the Fenbreeze collapse have been referred to local building company Metro Property Development SA, which has previously completed work for failed builders GNC Homes, Somerset Morgan and Bob Day’s Homestead Homes.

Metro Property Development SA director Steve Weightman said his company had started engaging with former Fenbreeze customers, with many of those affected first-time owners.

Most of the incomplete homes are located in Adelaide’s northeastern suburbs, Mr Weightman said.

“Our staff who have been to sites have described the workmanship as poor and a lot of remediation work is required to meet code and standards,” he said.

“Each of these clients entered into a contract in good faith that a home would be built to a budget and an acceptable standard and this promise has not be delivered.”

“By and large builders deliver on client expectations, the industry is properly regulated and indemnity insurance for builders is linked to council approvals, but you cannot control the actions of dishonest individuals.”

A report from liquidator, Ferrier Hodgson’s Tim Mableson reveals creditors are owed more than $500,000 following the collapse of Fenbreeze. Mr Mableson declined to comment ahead of a planned update to creditors in February.