GJ Gardner Homes Onkaparinga branch collapses, Tudor Homes goes under as well

The collapse of another two home builders and a softening housing market has led to renewed calls for a leg-up for the construction industry.

An unfinished house at Campbelltown that was being built by GJ Gardner Homes Onkaparinga, which has been placed in voluntary administration. Picture: Matt Turner

• Yeomans and Haskell kitchen manufacturer shuts down
• Master Builders Association’s warning as builder ODM goes under
• OAS Group being wound up with debts of $2 million
• Platinum Fine Homes entering voluntary administration

The collapse of another two home builders and a softening housing market has led to renewed calls for a leg-up for the construction industry.

But Premier Steven Marshall has brushed aside suggestions of a housing crisis.

GJ Gardner Homes on Tuesday terminated the franchise of its Onkaparinga branch for a “breach of contract” on the same day Beulah Park builder Tudor Homes was placed in voluntary administration.

GJ Gardner Homes SA managing director Kris Gill said nine of the 10 affected customers had chosen to transfer their contractors to other franchisees.

Tudor Homes’ administrator Anthony Phillips said Rossdale Homes had bought the five outstanding building contracts. He said it was unclear what were the causes of the builders’ woes but said that margins were tightening in the industry.

The Advertiser has sought comment from Tudor Homes director Trevor Booth.

Panorama-based Build Clean Adelaide director Sam Ackland said GJ Gardner Onkaparinga’s directors Mark and Jamie Lees owed him $6000 for work he did for another company JML Developments, which is also in administration.

Sam Ackland's company Build Clean has been stung twice in four months, losing $12,000 from builder collapses. Picture: Naomi Jellicoe

“With the banks tightening up lending we will see a lot more (builders) fall over in the next 12 months, that will have repercussions throughout the industry,” he said.

He said he also lost $6000 on the collapse of Beverley-based OAS Group, which went under in December owing $2 million, just days after the closure of Henley South builder Platinum Fine Homes.

Another company director, who declined to be named, said JML Home Constructions owed her company $13,000.

GJ Gardner Homes Onkaparinga was operated by JML Home Constructions — whose directors are father-and-son team Mark and Jamie Lees.

GJ Gardner Homes Onkaparinga office at Old Reynella. Picture: The Advertiser

Phone calls, emails and text messages to the Lees and their office have not been returned.

Mr Gill, following inquiries from The Advertiser, confirmed that JML Home Constructions had been placed in voluntary administration with Clifton Hall appointed liquidator.

He said customers and contractors had been informed of the status of JML Home Constructions.

“Nine of the ten customers with homes under construction have chosen to transfer their contracts to franchisees in neighbouring areas,” he said. “Everything will be completed as per their original agreements.”

He said neighbouring GJ Gardner Homes builders completing the projects would extend an opportunity to as many original contractors as possible to complete the remaining work.

Latests ABS data shows that total household lending in SA had fallen by 2.9 per cent in the past year, fuelled by a 13.3 per cent decline in investment lending to $295 million.

Master Builders of SA chief executive Ian Markos urged the State Government to exempt stamp duty on new builds up to the median house price. He said the industry had suffered 13 consecutive months of declining building approvals before a “tiny increase” to 621 in December 2018.

Opposition treasury spokesman Stephen Mullighan said that the Government must work with industry on how to build more houses in SA.

Mr Marshall dismissed any suggestion the building industry was in a crisis.

“It can’t be the case that every sector fires at exactly the same time but overall the construction sector in South Australia is doing well, “ he said.