‘Worrying trend’ as fears mount builder Hotondo Homes may fold
A major home construction company could be about to close its doors for good as the state’s building industry faces “a very challenging environment”.
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A CLOUD hangs over the future of Hotondo Homes in Hobart, with industry insiders speculating that it may soon be headed for imminent closure.
The Mercury repeatedly asked Hotondo Homes for comment but received no response.
However, one anonymous source said the decision had already been made and that the Sorell branch would be in charge of shutting down operations.
One Lindisfarne resident said a Hotondo Homes construction site next to her house had been abandoned, with the fencing removed and earthworks stopped.
She said a Hotondo Homes worker told her that they were closing down indefinitely and would not be continuing works on her neighbour’s property.
Master Builders Tasmania executive director Matthew Pollock could not confirm Hotondo had been put in the hands of administrators, but believed the company’s Hobart doors shut two weeks ago.
“It is a worrying trend, not just in Tasmania but a few firms on the mainland too have closed down,” Mr Pollock said.
“In the last eight to 12 weeks we’ve had two small builders and a kitchen and joinery firm lost.
“It is a very challenging environment at the moment with steep increases in the cost of building materials and fixed-price contracts.
“Builders can get into trouble when they estimate the cost six months before work starts and then materials go up 30 or 40 per cent.”
Mr Pollock said he understood Hotondo had about “two dozen” jobs on the go and that the Launceston franchise was still operating.
One veteran building insider said it was hard to believe that building firms could close when the sector was booming.
“It’s not down to a lack of work – there’s too much work – but some firms can get caught with cash-flow problems and they have to pay their sub-contractors,” he said.
“If you can’t pay your subbies, you’re in big trouble.
“There’s also a big problem with a lack of building materials and the cost going up too.”
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