Failed building boss: ‘I’m truly sorry’
The founder of failed Queensland construction giant Oracle says he is “truly sorry” for the $14m collapse of the company and has a stark warning to other builders. SEE THE FULL LETTER
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The founder of failed Queensland construction giant Oracle says he is “truly sorry” for the $14m collapse of the company and has warned other struggling builders to get out of the industry while they can.
In an open letter sent to The Courier Mail, Mr Orel said it was likely he would have to declare bankruptcy following the collapse of Oracle Building Corp in August after guaranteeing personal assets as security.
“(This) placed me in a very compromised financial position, which is likely to ultimately result in me having to declare bankruptcy in my own name,” said Mr Orel. “So I am definitely not wealthy.”
Oracle left 300 homes unfinished across Queensland and NSW and millions owed to an army of subcontractors including plumbers, carpenters and bricklayers.
Mr Orel said the challenges facing the building industry, a lack of government support and a “curiously focused regulator” had made the sector “utterly untenable.”
“My advice to the builders still battling away: get out before its inevitably too late,” he said. “Even in the best of climates, residential builders often operate on wafer thin profit margins. So when conditions like those the industry is currently seeing - surging demand for new home builds coupled with unprecedented supply chain issues and crippling labour shortages - flare up, builders are left exposed. As a whole, the cost of building has increased between 8 per cent and 40 per cent over the past year.”
In the letter, Mr Orel said he wanted to take the opportunity to “say that I am truly sorry”.
“I’m sorry to all my wonderful staff who were put out of a job on the morning of 24 August,” he said. “I’m sorry for all our clients whose dream homes are now yet another step away. I’m sorry for the stress that Oracle has caused you over the past two years.”
Commenting on land holdings owned by Oracle, Mr Orel said the parcels had been offered as collateral to secured creditors.
A report to creditors lodged with ASIC by the company’s liquidators earlier this month, revealed the company held 13 parcels of land valued at $2.8m.
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