Adelaide building CV Constructions, trading as Emerald Custom Homes, collapses owing at least $1.3 million
Another Adelaide builder has gone bust — the ninth in seven months — sparking a renewed call for government action to help the building industry.
- Failed home builder Coast to Coast Homes under investigation
- D & C Homes becomes eighth builder to go under
Another builder has gone bust sparking renewed urgings for government action to spark the building industry.
CV Constructions, trading as Emerald Custom Homes, has been placed in liquidation leaving eight homes unfinished and owing at least $1.3 million to 46 suppliers, subcontractors and government agencies.
Liquidator Mark Leese, of Agile Business Advisory said the company had been unable to secure builders’ insurance to enable them to keep trading.
“In terms of the underlying reasons behind that, it’s still early days (in investigations),” he said.
He said of the eight unfinished homes six had “minimal work” completed.
The company owed $18,207 in superannuation but Mr Leese said no staff were owed wages.
Emerald Custom Homes’ website describe the company as an eco-friendly builder of sustainable homes.
The 19-year-old firm is the ninth building company to fail in the past seventh months, including Coast to Coast Homes, which went under in May owing $5 million and most recently D & C Homes.
Master Builders SA chief executive Ian Markos said he was “very concerned” by the latest collapse and that the government must make housing more affordable.
“The industry and the government can’t keep their heads in the sand. Nine builders have gone under in the last seven months, so clearly there are issues that need to be addressed,” he said.
“Inefficient land release strategies, excessive development levies, taxes and charges, and excessive planning and building requirements such as compulsory rainwater tanks and energy efficiency reports drive up house prices by about 40 per cent.
“The Marshall Government’s proposed changes to land tax will also hurt affordability.”