Privium leaves 160 customers with incomplete homes amid fears of $28m collapse

Young families fear they will be left homeless as a troubled Queensland building giant Privium shuts down 160 projects nationwide while it teeters on the brink of a $28m collapse.

A young Brisbane family are among 160 customers left without completed homes as one of the country’s largest builders teeters on the brink of a collapse.

Annie and Raf Solomon last year knocked down their existing home at Birkdale to make way for a new house that was supposed to be built by Privium.

But almost a year after signing a contract and paying a $12,000 deposit, they are still living in rental accommodation and waiting for work to start.

Privium has announced it is shutting down the bulk of its building operations with warnings it could collapse owing subbies more than $20m.

Annie and Raf Solomon and their two children have been left waiting a year for their house to be built after troubled builder Privium walked away. Picture: Steve Pohlner

The Logan-based company told customers that it would transfer uncompleted projects to a separate builder called Torsion after warning its finances were deteriorating.

“There were constant delays from the builder and they just did not return phone calls,” said Ms Solomon, who has two young children.

“We were supposed to be in the house by now. Our dog has had to be housed away from us during this whole time because we are in a unit.”

Privium reported a loss of more than $28m last year as the construction industry felt the impact of shutdowns, labour shortages and price hikes caused by Covid-19.

However, in the same period it paid dividends in excess of $18m.

Nikki and Dan Jacobson in happier days when they purchased their block

Hervey Bay couple Nikki and Dan Jacobson are $80,000 out of pocket after Privium downed tools on their block leaving a pile of timber on their acreage property.

The couple signed a contract in January with Privium after being introduced to the builder by their mortgage broker.

But she said initial optimism about Privium, which traded under the name Impact Homes, quickly turned to concern when the company said initial plans for a low-set home had to be changed to a highset house because it was in a flood zone.

“We had initially put down a $15,000 deposit but put in another $15,000 to accommodate the change in the plan,” Ms Jacobson.

The couple became increasingly alarmed by the delays in building work, which reached a culmination two weeks ago when Privium said they would not complete their home and were transferring their contract to a company called Torsion.

“Privium sent us a new contract but when we contacted Torsion, they said they knew nothing about it,” she said.

The couple have now engaged lawyers who are pursuing the company over claims of a breach of contract.

Timber frames abandoned on Nikki and Dan Jacobson’s Hervey Bay property

The couple said they also risked losing their $25,000 HomeBuilder grant and fear they will become homeless when their rental lease terminates in April.

“We are looking to buy a caravan or even a tent which we may have put on our property,” she said.

Mr Jacobson suffered a serious motorcycle crash right before the block settled and was badly injured. He survived with permanent disability to his left arm.

“We pushed ahead and after all of the disappointing issues and set backs was looking forward to our dream home,” Ms Jacobson said.

“Now to have this occur is heartbreaking.”

Another Privium client, who did not want to be named, said he paid a $13,500 deposit but after signing his contract in January was still waiting for work to start.

He said he was covered by the QBCC Home Warranty Scheme but expected to have to pay an additional $30,000-$40,000 by the time he engages a new builder because of rising material costs.