Tasmanian builders: Devonport-based Golden Homes (Tas) Pty Ltd enters external administration

A Tasmanian residential construction company has collapsed, leaving multiple homes unfinished – but its administrator has shared their hopes for customers with homes left uncompleted. What triggered the collapse.

Devonport based residential construction company Golden Homes (Tas) Pty Ltd has entered external administration.

A Tasmanian residential construction company has collapsed, leaving multiple homes unfinished – but its administrator has shared their hopes for customers with homes left uncompleted

Devonport-based company Golden Homes (Tas) Pty Ltd officially entered external administration on August 30.

According to documents filed with ASIC, Michael Carrafa, of Melbourne-based SV Partners, has been appointed as administrator.

As part of the process, an administrator will investigate a company’s financial situation and provide recommendations as to how they can go forward – with options including but not limited to, winding up or restructuring the company, or selling it.

Golden Homes (Tas) Pty Ltd was first registered in January 2020 and is headed by director Emmett Davidson.

Emmett Davidson is the director of Golden Homes (Tas) Pty Ltd.

Mr Carrafa said while it was early days in his investigation, his primary concern was the homeowners who had incomplete builds.

“[I am] communicating with them and reviewing their domestic building contracts,” Mr Carrafa said.

He said the company had no intention of continuing to operate during the administration period, because the registered builder who was involved in their residential projects had “unfortunately walked”.

The Mercury understands the employee who left was Jarrod Stubbs.

Mr Stubbs is listed on the Golden Homes website as holding the position of director of construction, and is not a shareholder or director of the company.

Mr Davidson is not a registered builder, which means the company does not have the ability to continue trading.

“There is no registered builder within the company to complete the works, so the director has his hands tied because he can’t complete [the projects],” he said.

Mr Carrafa said the next step would be finding an alternate builder in the hopes that the remaining homes can be completed.

“The director doesn’t want this company to go into liquidation; there is a clear indication he wants to propose the deed of company arrangement, so the creditors receive a better return …”.

Devonport based residential construction company Golden Homes (Tas) Pty Ltd has entered external administration.

It is understood there are about seven or eight homes unfinished by the company.

“The director has been in conversation with a few other builders to find one who can take over the projects,” he said.

Mr Carrafa said he would also be querying the state government on the Residential Building (Home Warranty Insurance Amendments) bill, which on August 18 this year passed the House of Assembly.

The bill will give effect to a Home Warranty Insurance scheme by providing a mandatory, last resort scheme for residential building work that requires builders to take out home warranty insurance for the benefit of a homeowner.

It will also provide insurance cover for homeowners for the loss of deposits, non-completion and defects, subject to various financial caps where a builder has died, disappeared or become insolvent.

The Mercury has approached Golden Homes for comment.