Tradies, customers descend on Homestead Home offices after Bob Day’s business collapses
UPDATE: The number of SA Homestead Home customers whose building works have been impacted by the collapse of the company now stands at about 70.
- Analysis: How this will affect the Senate
- Bob’s exit a shock, so what now?
- The two mistakes that toppled Bob Day’s business
- Day quits Senate as company goes bust
- ‘Calm seas don’t make good sailors’ - Bob Day interview 2006
TREASURER Tom Koutsantionis says the number of SA Homestead Home customers whose building works have been impacted by the collapse of the company stands at about 70.
He announced the revised figure this afternoon - up from 48 Monday - as he urged affected clients of Bob Day’s Home Australia empire to contact insurer QBE to expedite claims.
“This is devastating news for families who in many cases have put everything on the line to build their dream home,” he said.
“I hope that Bob Day is able to find a way, in conjunction with the administrator, to repay the substantial debts he now owes South Australian contractors.
“Our small contractors are critical to our economy so Mr Day needs to make good on these debts so we don’t see further damage to the economy as a result of this liquidation.”
Across Australia, Home Australia owes about $12.5 million to unsecured creditors, excluding bank debt.
Under building indemnity insurance homeowners can claim a maximum of $80,000, which is underwritten by the State Government.
Master Builders SA chief executive Ian Markos said insurance cover should protect most homeowners but it is the tradesmen who may lose out.
“Homeowners should be covered by mandatory building indemnity insurance so are unlikely to be out of pocket. Other builders are sure to be able to help,” he said.
“The difficulty will be the subcontractors. Many may have been pretty much committed to Home Australia as a client, so have the most to lose. The scale of debts is still unknown, but it will be the smaller businesses that are likely to bear the brunt as they try to keep their businesses going.”
Homestead Homes customers and subcontractors descended on the company’s Modbury office Monday demanding answers once news broke that Bob Day’s company, which has 48 new homes under construction in SA, was in financial strife.
Among them were Jade-Ann and Daniel Wigg worried about the future of their partially completed home and painters Ron and Tracey van Zoelen.
Mr van Zoelen himself in the foyer of the Homestead Homes office for about four hours as he demanded payment for the $20,000 his wife said they were owed for work they completed on four Homestead properties.
“We kept being promised ‘you’ll be paid’ but we were too trusting,” Mrs van Zoelen said, before the pair left empty-handed and without any clarity on if they would receive the money.
“I just thought it would never happen, you hear of small builders having trouble, but nothing like this.”
Rick Perry, 64, and wife Noeline, 64, were hoping to move into their Craigburn Farm house before Christmas.
They have paid $120,000 of the total $300,000 cost and figure the house, which remains partly roofless, is about one third finished.
They had insurance cover and were hopeful another builder can finish the home.
Mr Perry said they had built with Homestead Homes previously, and his son and daughter had also built with them.
“We built down at Victor Harbor with them. They were absolutely fantastic.’
“When we decided to come back to Adelaide we thought, ‘well we’ll just go with them because they did such a good job.’’
“We’re tossing up now as to whether we just finish it ourselves.”
Master Builders SA chief executive Ian Markos said it was tradesmen who faced the biggest risk as a result of the collapse.
“Homeowners should be covered by mandatory building indemnity insurance so are unlikely to be out of pocket. Other builders are sure to be able to help (complete the homes),” he said.
“The difficulty will be the subcontractors. Many may have been pretty much committed to Home Australia as a client, so have the most to lose.
“The scale of debts is still unknown, but it will be the smaller businesses that are likely to bear the brunt as they try to keep their businesses going.”
Shane and Kelly Lewis signed up with Ashford Homes late last year to build in suburban Melbourne. According to their contract, they were scheduled to move into their house in a few weeks but little to no work had been done on their house since May.
As the couple and their two children stayed with Ms Lewis’ parents as the house was being built, the company remained silent. “It’s sad it has come to this but it is good we finally know what’s going on,” he said.
“I just want it to be over and done with. Hopefully we can get compensated through the Victorian Managed Insurance Authority and complete the house ourselves.
“This has put us and a lot of other families in financial stress, it’s just been the uncertainty of not knowing when it is going to be finished.”
