Red Bluff Homes the latest construction company to go under

Aussies building a home have been dealt another blow, with a Melbourne-based builder the latest company to shut its doors.

A number of Melburnians longing for the keys to their newly built home have had that dream quashed after another residential builder entered external administration on Thursday.

Red Bluff Homes has become the latest construction company to collapse this year, after calling liquidators in to wind up its trade.

The Keysborough-based business offers both interior and exterior design services, as well as a number of house and land packages, according to its website which remains active.

The company, which prides itself for its 35-year experience in the construction sector, conducts its service in both metro and regional parts of Victoria.

Red Bluff Homes has 35 years experience in the construction sector. Picture: Red Bluff Homes

It is now in the hands of liquidators Petr Vrsecky and Glenn Jeffrey Franklin from business advisory group PKF, according to external administration documents provided by the Australian Securities and Investments Commission (ASIC).

A spokesperson for PKF informed news.com.au 21 projects at different stages of completion have been impacted by Red Bluff Home‘s collapse.

“Presently we’re reviewing the company’s operations, activities and financial position, which includes an assessment of all houses under construction to determine their present status,” they said.

“We’re also investigating the possibility of other builders assisting with the completion of projects.”

PKF contacted all customers who had been affected by the collapse on Friday.

The company’s collapse comes just months after a Melbourne mum was “brought to tears” over a bitter dispute with Red Bluff Homes after it terminated the contract to her family’s dream home in September last year.

Dee Filik signed a contract six months with Red Bluff Homes prior to the termination, for the construction of their house in the inner northeastern suburb of Diamond Creek.

The company justified the termination by explaining there was a clause in the contract regarding proper planning permits being obtained and claimed that was done in July.

Ms Filik's land now sits vacant. Picture: Supplied

Reluctant to let the family’s hopes of having a brand new home slip, Ms Filik discussed signing a new contract which would see the original price for the home skyrocket from $473,500 to $618,986.

“The price was $140,000 more than the original price,” she told news.com.au last month.

“Since then I have been trying desperately to at least get my deposit back … and I can’t build the house as I need to get another permit through council and new plans.”

Both parties are now in a legal battle, with the company suing Ms Filik for an extra $9228 for its “costs to date” including legal fees, according to a document lodged with the Domestic Building Dispute Resolution.

The mum-of-one said it had been an “extremely difficult” time in her life as she gave birth to her first child in December.

“The experience has dealt a severe blow dealing with lawyers … ” she said.

“I have to now incur significant legal costs at VCAT to try and seek some sort of justice. And even then if I do ‘win’ I still lose. I don’t have a house being built, I’m out of pocket significantly and my mental health has declined considerably.”

It's not known how many customers have been affected by the collapse. Picture: Red Bluff Homes

Ms Filik claimed the messy legal battle has seen the building company focus on a separate issue where the family were constructing their own driveway and had put in a different planning permit to change the driveway and retaining walls.

She said this was secondary to building the house even though Red Bluff Homes is saying the issue is that permits weren’t obtained in time and it had to cancel the contract.

“We have always moved from house to house and always been in old houses and it’s been a dream of mine to build a nice family home and because I had my son coming it was something I always wanted – a nice family home to settle into,” she said in tears.

“It’s really upsetting. It’s taken a toll emotionally. I have severe anxiety daily not knowing what is going to happen with it as I’m just in limbo now.

“I can’t move forward because they (won’t) to give the plans back and even if I said ‘Don’t worry about them I can build’, it’s going to cost me more money and I don’t want to lose any more money on it.”

It’s not known what will happen to Ms Filik’s case now the company has gone under.

news.com.au has contacted Red Bluff Homes for comment.

– With Sarah Sharples

Originally published as Red Bluff Homes the latest construction company to go under