Multi-Res Builders had $7.3m contract with Homes Tasmania to develop 20 units at Glenorchy

The future of a more than $7m affordable housing project is now unknown, as the Tasmanian government is revealed to be one of the victims of the liquidation of a troubled construction company. THEIR NEXT STEPS >

The site at Nagle Pl, Glenorchy. Picture: Chris Kidd

The future of a more than $7m affordable housing project at Glenorchy is now unknown, as the Tasmanian government is revealed to be one of the victims of the liquidation of a troubled construction company.

It can be revealed that before the liquidation of Multi-Res Builders Pty Ltd – announced on Sunday – a $7.3 million contract had been in place between Homes Tasmania and Multi-Res.

The contract was in relation to Multi-Res delivering 20 units at Nagle Pl in Glenorchy.

The company is headed by 62-year-old director, Colin Barratt.

The Mercury has spoken to multiple people – including first homebuyer clients and former contractors – who say they are owed homes, and tens of thousands of dollars for works completed for Multi-Res.

Multi- Res Builders, Nagle Place, Glenorchy. Picture: Chris Kidd

A Homes Tasmania spokesman confirmed the contract and said they were working to make sure the project could be finalised.

“Homes Tasmania will now be examining its options to ensure this development can be completed,” the spokesman said.

The stall in the development is just another blow to people waiting for affordable housing, former Mayor of Glenorchy and Member for Clark, Kristie Johnston said.

“There are people on the housing registry for years and years and they are desperate to have housing, and in this particular area 20 houses is desperately needed,” she said.

She called for an inquiry in to the state’s construction industry.

“There needs to be an inquiry into why this keeps happening and how we can protect consumers and in this case the number of individuals seriously impacted by the collapse of this company,” she said.

“And the government are impacted, they are the consumer.”

Her calls for an inquiry were not as eagerly echoed by CEO of Master Builders, Matt Pollock, who said while the collapse of Multi-Res was a concern that held “tragic” ramifications for clients and contractors, he would need to see the details first.

Colin Barratt, 62.

Multi- Res Builders site at Nagle Pl, Glenorchy. Picture: Chris Kidd

“We would be very keen to see the details, we wouldn't be supporting or objecting to that at this stage,” he said.

“But we are talking about one or two businesses that have gone under; it’s tragic that the impact of that is that it affects homeowners and businesses, but whether or not (it) points to a bigger issue in the industry is perhaps a step too far.”

He said the failure of Multi-Res should not be seen as a reflection on the wider state of the industry in Tasmania – which he said had “proven to be quite resilient in a very, very difficult operating environment”.

The Mercury last week reported that All Brick & Block (Tas) Pty Ltd, directed by Mr Barratt’s son, Matt, entered external administration.

ASIC reports allege the company, which is behind All Brick Tasmania, had debts totalling a minimum of $2,072,617.48.

A photograph that had been displayed on the now wiped Multi-Res Builders website. Third from left: Mr Colin Barratt.

Creditor Watch data shows Colin Barratt currently sat at the helm of multiple other companies including All Brick & Block and All Brick Brick Laying Pty Ltd.

Other companies included Barratt Joinery, and Barratt Masonry, among others.

Minister for Workplace Safety and Consumer Affairs Elise Archer said submissions for a Home Warranty Insurance Bill would close on March 31.

Premier Jeremy Rockliff on Thursday in response to questions as to when bill will be brought into play said he would be working with Tasmanians and those in the construction industry to “minimise any disruption that is created through these challenges”.

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