Clouds over rescue plan for unfinished Privium houses

The small builder that has taken on the unfinished houses of the troubled Privium Group has yet to convince the regulator it has the financial clout to tackle the workload.

The Brisbane builder taking on 160 unfinished Privium Group contracts still has to convince the industry regulator that it can handle the extra workload.

Privium, one of Queensland’s biggest construction companies which also trades under the Impact Homes brand, has shut down the bulk of its building operations and there are fears the company is on the brink of collapse.

Torsion general manager Daryl Hopkins said Privium approached the company about four weeks ago about taking on the unfinished Queensland projects.

“They asked if we were able to take over a number of builds that were currently under construction,” he said.

Privium’s fouunder Rob Harder. Picture: Nigell Hallett

“They were forthcoming about the status of builds, trade and supplier debts which made the negotiation process quicker for both parties.

“To ensure that young families, first-home buyers and hardworking Australians are not left out-of-pocket and homeless, Torsion is looking to imminently restart the construction of Queensland homes.

“To date, we’ve received extremely positive feedback from clients, trades and suppliers in regards to Torsion taking over the outstanding projects. We’re grateful that we are in a fortunate enough position to be able to do it, and that we were able to get tradesmen back on the tools and jobs progressing within 10 days.”

Annie and Raf Solomon hhave been left with an unfinished home after Privium shut down 160 of its projects nationwide. Picture: Steve Pohlner

But there are some hurdles.

Torsion currently has a Category 2 low-rise builder’s licence through regulator the Queensland Building and Construction Commission and has applied for a Category 3 builder's licence so it can increase its workload.

A QBCC spokesman said the commission was “continuing to closely monitor this matter”.

Torsion has taken over Privium Group’s Queensland workbook.

A licensee must be able to demonstrate to the building regulator that it has sufficient assets to support the value of the work it is undertaking.

According to the QBCC in the last financial year Torsion had 82 jobs worth just over $18m. In 2019-20 it had 21 jobs worth about $3.34m.

In line with QBCC’s licensing, Torsion can only operate in Queensland and Privium jobs interstate cannot be completed by them.

Mr Hopkins said the majority of jobs from Privium were already under construction.

“While a handful are yet to start, our priority right now is getting the uncompleted houses finished,” he said.

Mr Hopkins said there was no existing relationship between Torsion and Privium aside from both working in the construction industry.

“There was and there remains no crossover between the two organisations,” he said.

“Torsion is an independently owned business with no shared directors, shareholders or management with Privium.” The licence of Privium Pty Ltd remains active.

Torsion is applying for a Category 3 builder's licence.

Based in the Technology Office Park in Eight Mile Plains, Torsion is owned by Torsion Holdings, which is half owned by Mr Hopkins’ wife Rebekah Kate Hopkins, and AFG Corp Housing & Community Pty Ltd.

According to an ASIC search, the couple previously co-ran a landscaping business Plant It QLD Pty Ltd before it was liquidated in 2015, following an application from the Australian Taxation Office which at the time was owed $200,000.

Torsion was created in 2018 and Ms Hopkins was made director of the company in October of that year after completing a QBCC-enforced three-year exclusion from being an office holder of a licensed company.

The exclusion prohibits a person from holding a QBCC contractor, nominee supervisor or site supervisor licence, or from being in a position of control or influence.

Ms Hopkins did not respond to a request for comment for this story.