Sawcom Homes wound up amid escalating Far North building crisis

Homeowners are facing a nightmare situation after another Far North construction firm in financial trouble had liquidators appointed amid an escalating building crisis.

UPTO seven homeowners are facing a nightmare situation after another Far North construction firm in financial trouble had liquidators appointed amid an escalating Far North building crisis.

The public notice to appoint liquidators published on May 17 followed a company meeting where it was resolved that East Trinity-based Sawcom Industries be wound up and Todd William Kelly be appointed liquidator.

“It’s still in the pretty early stages and we are still trying to work out creditor claims,” Mr Kelly said.

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“And we are also still dealing with seven houses that were still in construction and we have been liaising with those homeowners.

“We are looking to have an auction (of company assets) toward the end of the month.”

Formerly trading as Sawcom Homes, NQ Adaptive Homes, Cairns Garden & Mowing Care and Sawcom Welding and Engineering the company offered new home builds and a welding and engineering service for domestic and commercial projects.

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The building industry has been hit by a perfect storm of labour shortages and material price hikes in the past 12 months that has also led to the recent demise of Mareeba-based steel fabrication business Homefab and Cairns and Cape Construction. Scores of creditors have been chasing millions of dollars in unpaid invoices.

Last week the Queensland Building and Construction Industry (QBCC) cancelled the licences of almost 100 builders that failed to lodge mandatory annual financial reporting, due at the end of last year.

According to QBCC records Sawcom has retained a current low rise building licence but Mossman Custom Kitchens, Far Northern Building Projects and Independent Construction Services have all had licences cancelled for failure to comply.

FILE PHOTO. House building underway at Smithfield Village, a new real estate subdivision on the northern beaches of Cairns. Picture: Brendan Radke

QBCC commissioner Anissa Levy said the reporting helped ensure builders were financially sustainable, could complete projects they take on and could pay their employees and suppliers.

Master Builders Queensland regional manager Sharon Vella said extreme supply problems are impacting the progress of building works and causing significant cost increases.

“Master Builders surveyed members throughout 2021 on the extent of the problem and found that it only continues to escalate, now reaching critical levels,” she said.

“There is no expectation that things will improve in the near future.”

Sawcom Homes director Will Barnett was contacted for comment.

Originally published as Sawcom Homes wound up amid escalating Far North building crisis