Victorian construction company New Dimension Homes has entered administration with Glenn Crisp of Jirsch Sutherland appointed as administrator.
The administration is the latest in a string of collapses in the Australian construction industry, with the NSW Government announcing an enquiry earlier this month to try to address the problems in the troubled sector.
New Dimension Homes had a turnover last year of around $7 million and previously traded as Icon Designer Homes.
Its website describes New Dimension Homes as “one of Victoria’s top builders”, offering single and double-storey homes and house and land packages.
Crisp told SmartCompany the business went into administration earlier this week, by which stage all of its 15 or so employees had left.
“It ceased trading about a month ago so we are dealing with a shell of a company,” says Crisp.
“The company does not have any cash and does not hold a builder’s licence to build any homes.
“We had a meeting with the Housing Industry Association to work out how to get the homes finished for the home owners who are affected at the home owners’ insurers would not deal with us.”
Crisp says around 50 home owners have been impacted across Melbourne.
He believes the home owners have warranty insurance and the voluntary administration process triggers their right to claim under that insurance, but Crisp warns there will “certainly be delays” in finding new builders to complete the homes.
Creditors of New Dimension Homes are owed “quite a few million dollars” according to Crisp, with Westpac Bank as the major creditor and a number of suppliers such as Bunnings as large creditors.
The first creditors’ meeting will be held on Friday, September 7, where creditors will have the opportunity to retain or replace the existing administrators.
