Hallam-based builder Rawdon Hill was amongst the many unfortunate builders who faced an untimely demise in 2023.
Despite promoting its “thriving” business just a day before going into liquidation, Rawdon Hill formally announced on 25 May that it was winding up and had appointed Dye & Co as liquidators.
A day before liquidation, Rawdon Hill posted on social media that it could “help” customers of collapsed builder Porter Davis to complete their homes in the South East, according to The Age.
A Porter Davis customer in Clyde North says she came close to signing on with a deposit.
“We were about to sign on with this builder. They were the only ones that followed through with a quote for us,” she posted on social media.
“They’ve just gone into liquidation.”
In April, Rawdon Hill advertised in Star News that it had “secure product supply” and were “here to stay”.
“We acknowledge people’s reticence in choosing a builder in the current circumstances,” general manager Peter Grant stated.
“But want to emphasise that our current and future customers are and will continue not to be impacted negatively.
“We … can say with absolute certainty that we will proudly finish every single home in our strong pipeline, while we continue to pay everyone on time, every time – guaranteed.
“Rawdon Hill Homes continues to thrive and we are searching for even more local subcontractors.
“We are here and we are ready to build now.”
Since liquidation, Rawdon Hill’s Facebook page has been taken down. As of 31 May, its website however suggests it is still open for business.
The firm promotes itself as a low-volume builder with 46 years of experience.
Customers were plunged into turmoil in late March when Porter Davis went bust, leaving more than 1500 unfinished homes in Victoria.
Other builders such as Interface Constructions, Kleev Homes Pty Ltd, Chatham Homes and Melbourne-based Dome Building Projects have also since collapsed, joining the more than 2000 Australian building companies that have gone into liquidation since mid-2021, according to data from the Australian Security and Investments Commission.
First home buyer Amber Barnes was among the Porter Davis customers left in limbo and financial distress after the company’s collapse.
“I’ve got almost $60,000 locked up in a house and land that I don’t know how to get back,” she said.
“It’s devastating. You know, you save your whole life and now it’s just gone.”
In a second hit for the young childcare worker, with building yet to start on her home, her deposit was not covered by insurance, meaning she will likely lose out on at least $27,000 paid to the construction giant.
Miss Barnes said her current best option is to employ another builder to take on the construction of the home.
But even that would stir up between $80,000 to $120,000 in extra charges, she estimates.
“It’s going to cost us more than what we had first settled with with Porter Davis because we are now, as I said, two years down the track, everything’s gone up.
“It’s not going to be the fixed price we want. Or we try to get out of it, but I don’t want to lose on the money. I don’t want to lose on the location…it’s all in limbo.”
“I’ve had no contact with anybody. So I don’t I don’t know where I stand. I have absolutely no idea…it’s frustrating.
“Being a high volume builder, you’d think that you were safe with them for this to turn around and happen. It just goes to show that it could happen to anyone.
“I just personally just feel for everyone who’s in the same situation and just hope that they do the right thing. I hope that they come out and help their customers as much as they can.”
The State Government recently announced one-off compensation for 560 Porter Davis customers who signed their contracts and paid their deposits, but where Porter Davis did not take out Domestic Building Insurance (DBI), in breach of its obligations.
Grant Thornton Australia was appointed as the liquidators of 14 Porter Davis companies.
With 470 employees, Porter Davis had forecast $555 million in revenue for the 2023 financial year but there was “no option” but to liquidate, a Grant Thornton spokesperson stated.
“The extremely challenging environment for residential home building has directly contributed to the PDH Group’s financial position, with rising input costs, supply chain delays, labour shortages, and a drop in demand for new homes in 2023 impacting the Group’s liquidity.”
