Geelong-based Waterford Homes enters liquidation

With than 50 creditors are still waiting on their money after a Geelong building company entered liquidation, industry professionals have lifted the lid on the toll Covid-19 has taken on the construction sector.

Geelong residential builder Waterford Homes has entered liquidation, with a customer describing the development as shocking.

Liquidator Ben te Wierik, of BTW Advisory, said there were about 60 creditors including two employees, trades and suppliers as well as the Australian Taxation Office, owed around $600,000.

“The value is likely to increase as claims are lodged and quantified,” Mr te Wierik said.

“There are 10 homeowners with current builds at various stages of completion.”

He confirmed Waterford Homes entered liquidation earlier this week.

Mr te Wierik said he would investigate the company’s assets, why it failed and whether there were transactions that could be clawed back.

Home under construction

A client, who has a home in the early stages of construction and did not wish to be named, said the news was “a shock”.

“It’s an awful situation,” they said.

The Geelong Advertiser attempted to call a number linked to Waterford Homes but a voicemail message said with regret, it had suspended trading, and was directed to BTW Advisory.

Mr te Wierik said it was likely pressures facing the construction industry like material shortages and supply chain issues had contributed to the business’ failure.

“Unfortunately we are likely to see more construction businesses both (residential and commercial) facing liquidation over the next 12 months,” he said.

Supply shortages and the increasing costs of critical materials, such as timber and steel, have been two of the most pressing issues facing the building and construction industry over the past two years.

Master Builders Victoria president Mark Little, who runs a construction company based in Geelong, said unfortunately the industry was suffering due to material and trade shortages.

“Some builders who may have been struggling a bit may find themselves in the situation of using the next job to pay for the last job but when the market slows that cash flow starts to dry up,” Mr Little said.

“I do feel very sorry for all (Waterford Homes) staff, trades and suppliers, no one wants this to happen.”

A survey last year on material shortages by Master Builders Australia revealed that 98 per cent of Victorian builders had been affected by delays and price rises, with wait times for some materials blowing out to six months.

Thirty-six construction insolvencies occurred in Victoria in April 2022.

Mr te Wierik said as a consequence of Waterford Homes’ liquidation, homeowners who had entered into domestic building works contracts with the company which were covered by domestic building insurance policies issued by Victorian Managed Insurance Authority, could now make a claim under those policies for any loss and damage they have suffered for incomplete and/or defective workmanship.

He said homeowners should visit the VMIA website www.dbi.vmia.vic.gov.au or telephone VMIA directly on 1300 363 424.

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Originally published as Geelong-based Waterford Homes enters liquidation