Privium collapse homeowners have until March 22 to lodge a claim: QBCC

An important date is approaching for homeowners caught up in the collapse of Queensland building firm Privium last year.

An important date is approaching for homeowners caught up in the collapse of Queensland building firm Privium last year.

The Queensland Building and Construction Commissions said that homeowners with contracts with the collapsed builder have until March 22 to lodge a claim for loss of deposit or incomplete work with the watchdog.

Privium, once one of the largest home builders in Australia, had less than $400 in the bank after it collapsed leaving hundreds of unfinished homes and debts in excess of $80m.

Since the company went into liquidation in December the QBCC watchdog has received 126 claims – 120 of those are refund of deposit and six are non-completion claims.

This means more than $1.5 million is back in the pockets of Privium customers who made refund of deposit claims.

QBCC Commissioner Richard Cassidy says now was the time for those yet to lodge their non-completion claim to contact the QBCC as they may be entitled to assistance under the Queensland Home Warranty Scheme (QHWS).

“Customers can face many challenges when a construction company collapses and there are contracts and incomplete projects they need to navigate,” he says.

Privium founder Rob Harder

“Homeowners who have a contract with Privium and have paid a deposit may be entitled to a claim even if Privium failed to pay relevant QBCC insurance premiums.”

Cassidy says it didn’t matter if customers hadn’t terminated their contract with Privium, they could still make a non-completion or refund of deposit claim.

According to documents lodged with ASIC by liquidator FTI Consulting, Privium owes more than $80m, much of it in the form of loans to related entities in the group.

The Privium Group – including Privium Assets, Privium Investments and Privium Civil – is owed more than $47m in loans.

Privium founder Rob Harder is a director of several related entities as well as more than 80 other companies. Mr Harder called in voluntary administrators last November with the company leaving hundreds of home owners in the lurch across Queensland, Victoria and NSW.

The company had 890 homes around the country that were either under construction or in the preconstruction phase.

Privium, which did not file its financial accounts for the most recent financial year, reported a $28m loss in the 2019-2020 financial year and paid more than $22m in dividends.

FTI Consulting head of corporate restructuring John Park said he was following several lines of inquiry into the group’s collapse, including intercompany loans and dividend payments.