Queensland construction company hits clients with huge cost blow-outs to finish ‘dream homes’

The dream of owning a brand new home has turned into a nightmare for Queenslanders who are sharing horror stories about how it all went wrong.

Dozens of Queenslanders building their “dream homes” have been dragged into a stalemate with the builder who they say has demanded tens of thousands of dollars on top of the previously agreed price before agreeing to hand over the keys.

Oracle Platinum Homes is at the centre of a media storm after homeowners banded together to fight back against the extra charges — some as high as $100,000 over the original agreed price.

The builder says the costs are unavoidable — the result of unprecedented demand for materials since Covid-19 lockdowns and flooding in the state.

But clients who have pushed their savings to the limit with the hope of moving into their beautiful new homes are sharing horror stories about being stung by extra fees at the last minute.

Oracle Platinum Homes is passing on huge cost increases from the pandemic and supply shortages to clients building their dream property.

In a private Facebook group for disgruntled Oracle customers, clients are outraged. Some said as recently as Thursday that they had received called from the builder asking for more money to finish their project.

“Any recommendations on a good lawyer on the southside of Brisbane?” one person wrote on Thursday.

“Just got the call for a price increase and my house has not finished yet.”

Others held competitions to see who had been charged the most in additional fees.

“WINNER WINNER CHICKEN DINNER!!!,” one man wrote. “I think we’ve just taken out 1st prize in price increase … with a slightly modified floor plan. $62,708 increase over the base. Thank Christ we were only at tender.”

But another client soon topped that.

“Sorry we got $76,000 increase … and then a $46,000 increase in September. Our base was $391,000 originally (and have seen an increase of) $103,000.”

A letter from the company’s director Thomas Orel outlines the issues for clients.

That client said they were at the tender stage and “politely said bye”.

A retired couple “building our dream retirement home” shared their “nightmare” story on Facebook in a post seen by news.com.au.

“What a nightmare, there has been nothing but delays on the builders side,” they wrote.

“We signed our contract early December 2020. Building start date was pushed out to June 2021.

“We have not been given a practical completion date and just been hit with a $65,000 variation and seeking legal advice. Any advice, experiences would be appreciated, thank you.”

News.com.au reached out to Oracle and to lawyers for the builder but did not hear back.

A letter from Oracle director Tom Orel to a client blames “the ongoing ripple effects of the pandemic” for “causing supply shortages for the entire construction industry”.

“As a result of this we have no choice but to provide amended pricing,” Mr Orel wrote.

“These unforeseeable price rises are due to impacts caused by but not limited to Covid-19, international and national supply chain disruptions, variations to suppliers and trade agreements, variations to material changes due to unavailability of product and changes to work methods required under state health directions.
“We understand this will cause disappointment however Oracle has been absorbing a large proportion of these increased up until now and this decision has only been made as it is absolutely necessary.”

One of the variations passed on to a client in Queensland.

The Courier Mail reports that Oracle’s work this financial year includes the completion of more than 100 houses worth $36.6 million. Last year, the company completed 318 houses worth more than $90 million.

The newspaper cited a letter to clients from law firm Holding Redlich which represents Oracle. It warned them that starting with a new builder “is very likely to result in a substantial contract price rise compared to the price increase requested by Oracle.

“The impact on Oracle’s clients is terrible and they acknowledge that,” the letter reads.

“However, it would be even worse to be the client of a builder placed in administration because the business had ceased to be viable. Legal disputes about the contract will only make things worse for Oracle and its clients.”