Metricon troubles being monitored by Queensland building watchdog

Queensland’s construction watchdog says its monitoring the unfolding financial crisis impacting Metricon Homes which is building close to 1000 homes across the state.

Queensland’s construction watchdog says it’s monitoring the unfolding financial crossroads impacting Metricon Homes, the state’s largest house builder.

A Queensland Building and Construction Commission spokesperson said the watchdog is aware of the challenging conditions facing the building industry and is closely monitoring the situation through its financial compliance activities.

“All building contractors in Queensland, including Metricon Homes, must comply with minimum financial requirements,” the spokesperson said.

“The QBCC has the power to take appropriate regulatory action in respect of any contractor who does not satisfy the requirements.”

QBCC data shows Metricon has completed more 2500 homes in the state in the last two years worth close to $1bn.

Metricon Homes

Melbourne-based Metricon has finished more than 1000 homes valued at $404m in Queensland so far this financial year and more than 1500 homes valued at $503m in 2020/21.

In Queensland, Metricon has display homes at Barina, Bridgeman Downs, Broadbeach Waters, Burpengary East, Coomera, Greenbank, Helensvale, Newport, Palmview, Park Ridge, Pelican Waters, Rochedale, South Ripley, Spring Mountain, Tallai, Walloon and Willawong.

Metricon is in urgent crisis talks with clients after falling into financial strife, with sales staff within the company instructed to increase cash flow by securing more deposits.

Metricon bosses are expected to meet with major clients including the Victorian Government today to discuss the way forward. Earlier this week, the company co-founder and CEO Mario Biasin died unexpectedly at the age of 71.

Metricon joins a growing list of building companies facing financial pressure amid surging material costs and supply chain delays.

Earlier this year, giant firms Probuild and Condev went into liquidation, impacting thousands of staff and subcontractor.

In March, sought to renegotiate building contracts where initial time frames had run out, to account for higher costs in some areas, including Queensland.

Although legally entitled to do so, it reversed the move and would complete the homes at the original costs.

“In a small proportion of cases (mainly in Queensland), where customers had incurred delays in taking possession of their land titles, we were renegotiating contract prices with this small group due to unprecedented price increases over recent months,” Mr Biasin said in March. “However, we made the decision a couple of weeks back to stop these renegotiations.”

Acting Metricon CEO Peter Langfelder denied the company had solvency issues and said the business continued to be viable.

“There is simply no basis to these rumours. Metricon is a strong viable business without any solvency problem,” he said.

Mr Langfelder said all trades people and suppliers had been paid in full and the company had the support of its banks.

The biggest challenge Australia faces is to get more homes built for more Australian families and as the biggest home builder in the country we are the ones to deliver.”

Construction businesses across Australia are facing difficult circumstances in the face of rising materials costs and labour shortages.

Metricon employs approximately 2500 staff, primarily in eastern Australia, where it has a pipeline of roughly 4000 homes under construction.