Another construction company collapsed leaving clients in limbo with unfinished houses.
The third GJ Gardner Homes franchise, operated by LV Built in Tasmania, went into liquidation and closed on April 2.
“The situation with the former GJ Gardner Hobart West franchise is very unfortunate for everyone involved,” the CEO of GJ Gardner Homes told News.com.au.
‘At this time, our primary focus is on affected customers and their homes. We have begun working with the appointed liquidator and are speaking to each client to better assess the situation and their individual circumstances.’
The news comes after two other GJ Gardner franchises collapsed last year.
A franchisee in Springfield, Queensland, has declared bankruptcy and a Perth West franchise has gone into liquidation.
Its demise has been part of a worrying trend in Australia, with more than 2,000 construction companies collapsing in the 2022-23 financial year amid labor shortages and rising costs of construction materials, energy and fuel.
GJ Gardner Homes’ third franchise, operated by LV Built in Tasmania, went into liquidation and closed on 2 April.
The problems had been building long before the Hobart West franchise announced its liquidation.
Construction defects, approved plans that were not followed through, near-total work stoppages, contractors claiming they were owed money, and completed homes that still needed months of expensive remediation work.
Customers had allegedly been asking GJ Gardner Australia to do something for more than a year, but the franchisee was allowed to continue trading.
Client Akinola Ekundayo signed a contract in August 2021 with LV Built, but thought it was with GJ Gardner.
Work had begun in July 2023, but was halted when a downpour in October caused one of its retaining walls to partially collapse.
LV Built attempted to fix the wall, but a building inspector issued a notice to the city to stop work.
‘It looks abandoned, my place is abandoned. Nothing happens here,” Ekundayo said.
Its demise has been part of a worrying trend in Australia, with more than 2000 construction companies collapsing in the 2022-23 financial year amid labor shortages and rising costs of construction materials, energy and fuel (pictured: GJ Gardner Homes house plan).
Although the family complained to GJ Gardner, nothing has been done to fix the construction.
‘LV Commercially built as GJ Gardner Hobart is its builder, not GJ Gardner Australia. “We cannot build for you, nor handle construction for Ludek… at LV Built,” GJ Gardner allegedly told the Ekundayos in an email.
Owen Knight, another customer, said he immediately noticed problems with his construction in Huon Valley, saying “a part of the slab was missing.”
Knight said that was just one of the structural issues that also included an improper roof pitch, a peeling moisture loop in the garage and blocked floor debris.
Another customer, who wanted to remain anonymous, said he also had problems with the corners of his slab coming loose.
When they finished their house ahead of time, they were surprised to discover that pipes were missing and many other things were incomplete.
Their fears were confirmed when an independent building inspector found nearly 50 pages of substandard and incomplete work.
GJ Gardner said he will help find new builder clients so their homes can be finished.
The Hobart franchise still has 30 homes under construction and liquidator Rodgers Reidy is contacting every client and subcontractor.
Meanwhile, GJ Gardner Homes said it will help customers find new local builders.
The nationally recognized housebuilder said it had been slow to act due to “difficult trading conditions”.
GJ Gardner said once they were aware of the issues, they provided support and “guidance” to help the franchisee with its “operations and finances.”
GJ Gardener will not renew his contract with LV Built once it expires later this year.
WhatsNew2Day Australia has contacted GJ Gardner Homes for comment.