SBG Building Group customers pay thousands to break contract over ‘extreme’ delays
Customers of a Cranbourne-based builder say extreme delays have left them “financially and emotionally drained”, leaving some with half-built homes and paying thousands just to break contract.
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Customers of a builder operating in Melbourne’s booming southeast say extreme construction delays on their dream homes have left them “financially and emotionally drained”, with some being forced to spend thousands in legal fees just to break contract.
The Herald Sun has spoken to various customers of Cranbourne-based SBG Building Group who say they’ve been left with unfinished homes as construction stalled for months on end despite the builder continuing to issue invoices.
One customer also claims the company is now refusing to hand over crucial compliance and warranty documents related to completed works, preventing him from securing another builder.
SBG, which operates across Melbourne’s growth corridors including in the Cranbourne and Clyde areas, markets itself online as one of the southeast’s “premier” builders.
“With over 25 years of experience in residential, commercial and industrial construction, we know what matters to you when it comes to designing and building your next home – personal service and progressive quality design at an affordable, upfront price,” its website states.
Kapadia and Gordon Lawyers principal lawyer Raynal Kapadia, who has represented various SBG customers, said the most common complaint from clients was a significant delay on building works, with some houses left untouched for “months and months on end”.
“This is despite numerous assurances given that the works would be completed ‘shortly’,” he told the Herald Sun.
“The builder also then often issues its progress payment claims early, prior to the completion of the relevant stages of work.”
It comes after the Victorian Building Authority suspended and fined SBG $20,000 earlier this year for failing to comply with a dispute resolution order made by Domestic Building Dispute Resolution Victoria (DBDRV) for a site in Carrum Downs.
The disciplinary action is being appealed in the Victorian Civil and Administrative Tribunal.
Electrical company Power Pro Electrical Contractors also previously issued a winding up application against SBG in October last year.
Winding up notices are usually issued by creditors of a company in order to enforce the payment of a debt.
The Supreme Court application has since been dismissed.
Rohan Maben signed a contract with SBG in June 2022 for his double-storey dream home for his young family in Clyde North.
“Building works commenced in February 2023, with a stipulated construction period of 330 days,” he told the Herald Sun.
But the project remains far from completed.
“They sent me a fixing stage invoice, but I refused to pay it because not all things under the fixing stage had been completed,” he said.
“Then they came back in January this year and did the cabinets and bench tops and sinks. Then they invoiced me again.
“Again I was not going to pay for the fixing stage because the stairs were not up. But they were adamant that the stairs were not part of the fixing stage.
“I ended up paying in good faith. I wanted to maintain a good relationship with them and just get the house finished.
“After that, no works were carried out and there hasn’t been any communication.”
After enduring more than one and a half times the predicted construction period and exhausting all options for resolution, Mr Maben said he was left with no choice but to seek legal advice and terminate the contract.
Mr Maben said he also reported SBG to the VBA, who referred him to the DBDRV.
He is now taking SBG to the DBDRV over claims the builder is refusing to provide essential compliance and warranty documents related to completed works, including certificates for the slab, frame, drainage, windows, insulation, plumbing, and electrical.
“These documents are required for certification and continuation of work with a new builder,” Mr Maben said.
“Numerous critical elements remain incomplete, including downpipes, garage doors, front facade (lockup stage), and stairs, internal doors, balcony balustrade, plumbing and electrical fit-outs (fixing stage).
“I’m so stressed. I can’t sleep now because no plumber is going to touch the job. No electrical guy is going to touch the job, without these documents.”
Mr Maben estimates it will cost him about $120,000 to finish his home.
“These delays have left my family financially and emotionally drained, with no certainty or accountability from the builder,” he said.
“I kept asking them throughout this whole ordeal, when are you going to come back and do some work.
“They would say ‘yeah we’ll come soon’ verbally, but they never responded to any emails.
“There was no communication so I was just left in limbo, just hoping for the best from them.”
Another customer, who signed with SBG in September 2022 to build a home for his wife and two young children in the Clyde area, told the Herald Sun that sustained construction delays had left him feeling “helpless”.
“They claimed the fixing invoice last year in January which was $109,000. They said they were going to finish construction in May last year,” he said.
After significant delays and a lack of communication the customer sought legal advice in January this year.
“Our lawyer sent an intention to terminate so they would come onto the site and work, but that didn’t do anything,” he said.
“They did some insulation work in November last year, then they came back in March this year and did some heating and cooling works, that’s it, nothing more.”
After spending close to $10,000 on legal fees over four months going back and forth with the builder, he said he is right back where he started.
“I had to stop the lawyer because it was too expensive. I have to look after the mortgage and my family,” he said.
“I feel helpless, we don’t know what to do.”
The customer has since applied to the DBDRV in an attempt to force the builder to continue construction.
Mr Kapadia said any customers affected by SBG should seek proper legal advice from a building dispute lawyer.
“Ultimately timely advice can result in the homeowner saving thousands,” he said.
“Often it is not only the cost of the builder that causes difficulty for owners, but also the cost of maintaining an additional mortgage or paying rent while the home is chronically delayed.”
A representative for the company said that the allegations were “vehemently denied” and were yet to be ventilated in appropriate forms such as DBDRV and VCAT.
Originally published as SBG Building Group customers pay thousands to break contract over ‘extreme’ delays
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