Metricon forcing customers to cough up extra $100,000 for new builds or lose dream homes

One of Australia’s top home builders is forcing homeowners to choose between forking out thousands in extra fees or losing their deposits and dream homes.

Metricon customers say they’ve been forced to fork out $100,000 in extra fees. Picture: David Caird

Homeowners are being forced to cough up an extra $100,000 on new builds with Metricon, strongarmed into new contracts as the firm allegedly capitalises on an ailing market.

It comes as sales of new homes fell across Victoria last month by more than 23 per cent – the largest dip recorded nationwide – while annual sales nearly halved.

Significant rate increases, cancelled jobs and rising costs of building materials and trades contributed to low sales, according to the House Industry Association.

But it is existing Metricon customers, many with land yet to be titled, who recently copped the brunt of builders attempting to recoup those losses.

Homeowners are copping the brunt of builders’ efforts to make up for their losses. Picture: David Caird

A crop of frustrated homeowners revealed their contracts with the firm were torn up 12 months after signing, only to be reissued papers stamped with eye-watering price hikes.

One couple said they were told to fork out an unexpected $120,000 in extra fees or have their build cancelled and $20,000 deposit forfeited.

Another man claimed he was told only three weeks out from on-site work beginning that he would be charged an additional $100,000 on top of the original $513,000 price tag.

In both instances, the clients were told they had breached their contract as per various clauses

The Herald Sun understands much of the variations coincided with the contract’s 12-month fixed price period ending, allowing Metricon to re-evaluate the build’s cost.

Extra costs were anticipated due to rising costs of materials and labour, however, many clients said it was unacceptable they weren’t provided an exit option without a hefty financial loss.

But a Metricon spokeswoman argued deposit refunds were offered, less “any reasonable internal and external costs” the firm had already incurred on the contract.

Metricon is forcing homeowners to pay thousands in extra fees or say goodbye to their dream homes.

“For more than 90% of our customers contracts are proceeding without any significant complication,” she said.

“However, in a small proportion of cases, there has been unexpected delays, during which time building costs – most labour and materials – have significantly increased.

“Customers are encouraged to think about the kind of home they can afford and to discuss with Metricon staff which elements they may remove from plans – that can be added back later to save on costs today.”

The spokeswoman confirmed Metricon was preparing to lay off roughly 60 team members.

“ … The company is currently undertaking a consultation process – reviewing the positions of a number of employees – mostly from Victoria and NSW, who work across operations and support services nationally,” she said.

A government spokeswoman urged concerned customers to make contact with the relevant authorities.

“All companies should follow the law,” she said.

“Any customers concerned about contract changes should contact Consumer Affairs Victoria.

Premier Daniel Andrews said Metricon had gone from “strength to strength” since his government supported it through last year’s rocky period. Picture: NCA NewsWire

Meanwhile, Premier Daniel Andrews on Thursday said Metricon had gone from “strength to strength” since his government had supported it through a rocky period.

Last year the state government paid the company early for work on state projects to help provide security at a time it was speculated it might go under.

“It was much about confidence as it was about the fundamentals of the business and that’s clearly borne out by the fact that that business is going from strength to strength,” Mr Andrews said.

“We were able to directly engage with that business and play a part in saving that business.

“Metricon is an absolute example of the government doing what has to be done.

“Senior bureaucrats and ministers were directly involved in that and it was a very good outcome.”