Privium collapse hits Victorian, NSW home customers as FTI Consulting are appointed administrators

The collapse of Queensland home builder Privium has hit its NSW and Victorian customers, who now find their home dreams caught up in the fallout.

The fallout of the collapse of Queensland home builder Privium has spread to NSW and Victoria. Picture: Matt Loxton

The collapse of troubled home builder Privium has seen a crisis meeting held at NSW’s Home Building Compensation Fund iCare, as several hundred Victorian customers face uncertainty ahead of wild weather set to hit the state.

The Queensland building group was placed into voluntary administration on Wednesday, with business advisory firm FTI Consulting set to oversee the collapse of the company, which boasted operations in NSW, Victoria and Queensland.

Its group of companies will now fall under the control of administrators John Park, Joanne Dunn, and Kelly Trenfield.

FTI said they would seek to make a recommendation for the future of Privium, however the fate of those with home construction contracts with the company is uncertain.

The administrators will conduct an independent assessment of the financial position of Privium.

FTI noted they would make decisions in the best interest of the creditors and stakeholders.

“The administrators will work closely with the applicable regulators in Queensland, NSW and Victoria to ensure individuals receive assistance and, if appropriate, have their properties completed by an alternative builder,” FTI said in a statement.

The administrators said they would make a high level creditors update in late November.

Senior management at icare held crisis meetings on Tuesday ahead of the appointment of administrators on Wednesday.

Privium customers with unfinished projects have been clamouring to claim against the state’s compensation fund.

Customers have also been making claims against the company at NSW Fair Trading, with 14 landing in the past week.

Data indicates Privium, which stopped paying its subcontractors in recent days, may have been in trouble for longer.

The first complaint to NSW Fair Trading about the company was lodged on November 5, in relation to delays on rectification work under warranty on a completed home.

“Enquiries into the operations of Privium Group in NSW are currently being carried out,” NSW Fair Trading said.

“The priority is to advise and provide support to consumers. Fair Trading encourages any consumer who has outstanding work or funding with Privium to lodge a complaint.”

The Victorian Managed Insurance Authority said its records showed almost 300 insurance policies against Privium for ongoing projects in the state.

All domestic building projects of $16,000 or more have been required to purchase cover with the VMIA since 2010.

VMIA said until the formal notice of administration was lodged to the corporate regulator customers would be unable to claim, however two customers have already lodged papers.

The collapse of Privium leaves several hundred residential projects unfinished ahead of wild weather set to strike Victoria in the coming days.

With Privium now in turmoil it’s unclear whether any work will be done on these home sites or efforts made to secure them against the elements after tradies downed tools.