Master Builders Association of SA issues start warning as third builder — ODM Group — goes under in a week

The demise of another local building company has prompted the Master Builders Association of SA to say there is a crisis in the industry and push for an inquiry into the factors driving up the cost of builds.

Master Builders Association of SA Inc CEO Ian Markos says the housing sector in South Australia is in serious trouble

The demise of another local building company has prompted the Master Builders Association of SA to say there is a crisis in the industry and push for an inquiry into the factors driving up the cost of builds.

Stirling-based ODM Group has become the third builder to be wound up this month, appointing Taylor Insolvency as liquidators.

Documents filed with ASIC show ODM Group was $279,000 in debt and owed six employees over $60,000 in wages and entitlements.

It follows Beverley-based OAS Group being wound up with debts of $2 million and award-winning builder Platinum Fine Homes entering voluntary administration.

Master Builders chief executive Ian Markos said the newly-established Productivity Commission needed to hold an inquiry into the factors driving up the cost of builds.

“It’s not over egging the pudding to say the housing sector in South Australia is in serious trouble, three South Australian builders have gone under in the past week,” he said. “This is devastating news for everybody concerned.”

“The Marshall Government can start today by writing to the Australian Building Codes Board and requesting that the requirement to have a rainwater tank be removed from the National Construction Code.

“It’s decisive action like this that protect jobs and helps more first homebuyers get into the market.

“On the other hand, every day the Government sits on its hands increases the likelihood of another builder going under.”

Association of Building Consultants spokesman Chris Short said if more and more builders go under homeowners could be the ones to suffer as tradies would cut corners to win work.

“The challenge is that some of these defects might go unnoticed for months or even years, and when they finally become a real problem that needs to be addressed there is every possibility that the builder is no longer in business so a claim on indemnity insurance is the only option,” he said.