As a builder in NSW went into liquidation, several of its unfinished homes were left in limbo.
Jirsch Sutherland confirmed that Ansa Homes had a debt of over $3 million. It left 45 homes unfinished.
The license of Ansa Homes was suspended by the NSW Building Commission for 60 days on July 4 this year, which the company had ceased to trade before it was placed into administration.
The spokesperson said that the company’s cash flow problems became apparent after the license was taken away.
However, 45 of the company’s unfinished homes were still being worked on by administrators as of August 28.
The spokesperson also said that Ansa’s creditors are owed over $3 million, which includes the Australian Taxation Office’s debt.
The building commission of NSW had found numerous issues with the company’s work, including improper conduct and defective building work.
Before the license of the company was canceled, court proceedings had revealed that Ansa would be dissolved.
Prior to administrators’ intervention, Ansa Homes was registered in the Edmondson Park area in Sydney’s west.
Anoulack Chanthavong, the state building minister, blamed the previous governments for the patchwork of regulations that affected the construction industry in NSW.
He said that the building commission had started implementing measures to weed out bad players.
Due to the sudden emergence of the Ansa Homes administration, the building minister urged people who were affected by the company’s failure to make a claim through the home building compensation scheme.
This type of insurance provides homeowners with financial protection against the risks that their home might go uncompleted.
A spokesperson for the NSW Building Commission also confirmed that the company and its director could still face disciplinary action.
On August 20, the building commission issued a show cause notice to the company and its director.
They were also required to explain why they should not be penalized.
The spokesperson for the commission noted that the 60-day suspension of the license of Ansa Homes had been carried out as part of the commission’s disciplinary process.