Clients, contractors count costs as G.J. Gardner home building franchise enters liquidation

The collapse of Hobart’s G.J. Gardner building franchise has been described as a “terrible outcome”, with at least 30 customers left high and dry after the company entered into liquidation.

The office of GJ Gardner Homes on Sandy Bay Road in Battery Point that is now closed. GJ Gardner Hobart goes into liquidation. Picture: Nikki Davis-Jones

The collapse of the Hobart franchise of G.J. Gardner Homes has been described as a “terrible outcome” for Tasmanian families, with at least 30 customers left high and dry after the company entered into liquidation.

Some clients have described their dealings with franchisee LV Built Pty Ltd as “the worst experience of our lives”.

The Hobart West franchise closed on April 2.

G.J. Gardner’s mainland headquarters has promised to help source alternative local builders to finish those Tasmanian homes still under construction.

“We have begun working with the appointed liquidator and are speaking with each customer to better assess the situation and their individual circumstances,” G.J. Gardner Homes chief executive Trent Gardner said.

“G.J. Gardner Homes will use all the means at our disposal to help customers to source alternative local builders to finish the 21 homes under construction and enable a smooth transition.”

Mr Gardner said the Hobart franchise had a further 10 at “practical completion”.

GJ Gardner Hobart in liquidation – home under construction in Bellerive. Picture: Caroline Tan

“All I ever wanted was what I paid for”.

Glaziers Bay vigneron Owen Knight said what supposed to be a nine-month build on his new family home had turned into a two-year struggle.

Mr Knight closed his vineyard’s cellar door business to allow the build to take place on the property, and had budgeted for a year without income.

But another 12 months down the track, his family still has not taken occupancy of their new home, leaving Mr Knight and his wife still living in temporary accommodation.

“We knew that we would lose a selling season, but we have now lost two entire seasons, so I haven’t had an income from wine for two years,” Mr Knight said.

“And it’s been the worst two years of my life.

“All I ever wanted was what I paid for”.

Owen Knight's unfinished G.J. Gardner house in Glaziers Bay.

Mr Knight called on Tasmania’s Consumer Building and Occupational Services to do more in order to prevent other clients having similar experiences in the future.

“The most important question is what is CBOS paid to do,” he said.

“I run an alcohol business, and if I was in breach of my liquor licence, the authorities would rightfully come down on me like a ton of bricks.

“CBOS licenses the building industry … so why is it the consumer’s job to hold the builder to account to build to approved plans?

Another client, who asked not to be named, told the Mercury that the franchise’s closure meant nobody else would go through the “emotional rollercoaster” he and his partner had experienced.

“We are some of the lucky ones, because we have a roof over our heads,” the man said.

“G.J Gardner’s closure means things in my house will never get fixed, but I am happy because I don’t want anyone else to go through what we went through.”

The man said early in his home’s construction process, the building’s frame ended up overhanging the concrete foundations, and that he was unable to get a satisfactory response from the company’s headquarters.

“The company’s attitude was disgusting, they did not take accountability,” the man said.

Contractors left out of pocket

A Tasmanian tradesman, who also asked not to be named, said that while he was owed $7000 by LV Built Pty Ltd at the time of its liquidation, he knew other contractors who were owed up to $150,000 each.

The joiner said he was contracted to build kitchens and staircases in G.J Gardner homes, but gradually scaled back his work with the company as time went on.

The office of GJ Gardner on Sandy Bay Road in Battery Point that is now closed. GJ Gardner Hobart goes into liquidation. Picture: Nikki Davis-Jones

“I could kind of see the writing on the wall, so I stopped doing the kitchens because I didn’t want the outlay in case this [liquidation] happened,” the tradesman said.

“Even last week when I was chasing money from them for two jobs, they kept saying ‘we are waiting for a payment from a house and that I would have my money the next week.

“Then on Tuesday they went into liquidation.

“I won’t see any of that money, and it will affect my business.”

Response from CBOS

A spokesperson for Tasmanian building regulator Consumer, Building and Occupational Services (CBOS) said it recognised that building a home was one of the biggest investments many Tasmanians would ever make.

CBOS encouraged any consumers who had concerns regarding G.J. Gardner Homes Hobart West to contact its office directly for advice and support, the spokesperson said.

“CBOS is seeking information from the liquidator and is making contact with all known affected consumers,” they said.

“It is not appropriate for CBOS as the regulator to comment on individual matters or matters that may be subject to an investigation.

“Affected consumers may access the Financial Assistance Package which provides support for up to 20 per cent of a residential building work contract to a maximum amount of $200,000.”

Master Builders Tasmania chief executive David Clerk said that while the building sector in Tasmania was generally in a strong position, G.J. Gardner’s collapse was “a terrible outcome” for affected families.

CEO of Master Builders, David Clerk. Picture: Linda Higginson

“Master Builders has been working closely with the Government to develop a home warranty insurance scheme to help protect people from this situation and I encourage anyone affected to contact the government because there is financial support available right now,” Mr Clerk said.

“It’s also important to consider reintroducing business modules for the certificate III and IV process to help future-proof the sector.”

The Mercury contacted LV Built Pty Ltd for comment.