Home builder Just Kits collapses owing $1.3m, hitting ‘numerous clients

A Queensland building company that specialised in small kit homes has gone under leaving ‘numerous clients’ in the lurch.

• FULL LIST: 50 Qld insolvencies

A Queensland building company that specialised in small kit homes has gone under owing more than $1m and leaving “numerous clients” in the lurch.

Dane Hammond, of Worrells, was appointed administrator of Pialba-based Just Kits, trading as JK Project Homes, after the 18-year-old company was hit by rising costs and materials in the construction industry.

According to the Queensland Building and Construction Commission (QBCC), Just Kits undertook 53 projects last financial year worth $5.1m.

In a report to creditors, Mr Hammond said the company was founded in 2005 and primarily supplied smaller kit homes and garages before taking on larger projects and changing its name to JK Project Homes.

“The insolvency of the company is attributed to continued trading losses, the downturn in the economy and common issues surrounding the building industry such as rising costs in materials and logistics and skilled labour shortages,” Mr Hammond said.

The company owes subcontractors and suppliers across south-east Queensland about $1.3m. Mr Hammond said the QBCC also had been included as a creditor for an undisclosed amount after “numerous customers” contacted the watchdog to make claims under Queensland’s home warranty insurance scheme.

“The QBCC will likely have recourse against the company for claims paid out,” he said.

Mr Hammond said that in February last year, the company started to take on larger work to build bigger homes.

“In order to assist clients with meeting the bank’s lending criteria, it changed its name to JK Project Homes,” he said. “It is understood finance was more difficult to source for the construction of kit homes.”

The building industry has been hit by a perfect storm of labour shortages and material price hikes in the past 12 months that has seen the demise of major builders including Probuild, Condev, Privium Homes, and Pivotal Homes. Comment has been sought from the company.