Aussie builder’s $3.1 million collapse hits homeowners hard—Could your home be next?
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A sudden collapse of a well-known Aussie home builder has left creditors, homeowners, and contractors scrambling for answers.
What was once a thriving business has now become a cautionary tale for the construction industry, with widespread impacts that go far beyond the company’s failure.
As the dust settles, the repercussions are still unfolding, revealing troubling details that many didn’t see coming.
*Clarke Homes* has collapsed, leaving numerous creditors with unpaid debts and homeowners grappling with unfinished properties or defects.
The Central Coast NSW-based home builder was placed into administration, and creditors met on Wednesday to discuss their options.
Jonathan Allan Clarke was listed as the sole director of the company by the Australian Securities and Investments Commission (ASIC).
With over 100 creditors, the company owes approximately $3.1 million, along with unpaid salaries, leave entitlements, and superannuation to its employees.
A significant portion of these creditors are contractors, suppliers, and tradespeople. One local company claims it is owed around $60,000.
'We’re just trying to see if we can recoup some of the money so we can keep going,' said an unnamed creditor.
'We’ve been busting our a**** to stay afloat because, with the cost of living, many people are not spending.'
SV Partners' Joshua Robb and Jason Porter were appointed administrators and found that the rising costs of materials and labour had made completing fixed-price contracts unprofitable.
'Unfortunately, there were a number of incomplete jobs at the time of our appointment. We have written to the affected homeowners and are assisting them during this difficult time,' said Robb.
The NSW Building Commission had received four complaints about Clarke Homes concerning building-related issues.
A spokesperson for the Commission stated: 'The Commission has provided advice to a number of these individuals about their rights when pursuing their matters in relation to Clarke Homes Pty Ltd.'
The Commission added: 'It is also currently assessing one of these complaints for potential further regulatory action.'
In light of the collapse, the Commission has urged homeowners affected by Clarke Homes’ conduct to contact them for support, assistance, or to file a complaint.
Among those affected are Alesha McNamara and her husband, who spent almost $400,000 on their ‘dream home’.
Though they’ve been living in the house since early 2024, the couple is facing numerous defects.
McNamara shared: 'Every trade (person) we spoke to was owed money.'
‘We had different tradesmen start and finish jobs. We’re just lucky we got a house in the end,’ she added.
While the house was habitable, defects such as holes in the ceiling would cost tens of thousands of dollars to fix.
As McNamara is on maternity leave, the couple cannot afford to get these issues repaired at present.
'It’s definitely cost us a whole lot more than what paying for a different builder might have,' McNamara said.
Robb explained that Clarke Homes ceased trading once SV Partners took control, and a report for creditors would be issued soon.
Homeowners with defects are advised to hire another builder for rectification work, with the cost making them unsecured creditors.
There is hope for some Clarke Homes customers through the Home Building Compensation Fund (HBCF), which offers protection for defective or incomplete work.
Many homes built by Clarke Homes have an HBCF certificate.
This offers a safety net for homeowners when the builder is insolvent, deceased, or non-compliant with licensing regulations.
Clarke Homes and SV Partners have been contacted for additional comments.
In a previous story, we highlighted the distress faced by families left stranded after another building company’s goes bust.
To learn more about how this is affecting homeowners, read the full story here.
With the collapse of Clarke Homes leaving so many homeowners and contractors in limbo, what do you think needs to change in the building industry to prevent this from happening again?
Share your thoughts in the comments below.
What was once a thriving business has now become a cautionary tale for the construction industry, with widespread impacts that go far beyond the company’s failure.
As the dust settles, the repercussions are still unfolding, revealing troubling details that many didn’t see coming.
*Clarke Homes* has collapsed, leaving numerous creditors with unpaid debts and homeowners grappling with unfinished properties or defects.
The Central Coast NSW-based home builder was placed into administration, and creditors met on Wednesday to discuss their options.
Jonathan Allan Clarke was listed as the sole director of the company by the Australian Securities and Investments Commission (ASIC).
With over 100 creditors, the company owes approximately $3.1 million, along with unpaid salaries, leave entitlements, and superannuation to its employees.
A significant portion of these creditors are contractors, suppliers, and tradespeople. One local company claims it is owed around $60,000.
'We’re just trying to see if we can recoup some of the money so we can keep going,' said an unnamed creditor.
'We’ve been busting our a**** to stay afloat because, with the cost of living, many people are not spending.'
SV Partners' Joshua Robb and Jason Porter were appointed administrators and found that the rising costs of materials and labour had made completing fixed-price contracts unprofitable.
'Unfortunately, there were a number of incomplete jobs at the time of our appointment. We have written to the affected homeowners and are assisting them during this difficult time,' said Robb.
The NSW Building Commission had received four complaints about Clarke Homes concerning building-related issues.
A spokesperson for the Commission stated: 'The Commission has provided advice to a number of these individuals about their rights when pursuing their matters in relation to Clarke Homes Pty Ltd.'
The Commission added: 'It is also currently assessing one of these complaints for potential further regulatory action.'
In light of the collapse, the Commission has urged homeowners affected by Clarke Homes’ conduct to contact them for support, assistance, or to file a complaint.
Among those affected are Alesha McNamara and her husband, who spent almost $400,000 on their ‘dream home’.
Though they’ve been living in the house since early 2024, the couple is facing numerous defects.
McNamara shared: 'Every trade (person) we spoke to was owed money.'
‘We had different tradesmen start and finish jobs. We’re just lucky we got a house in the end,’ she added.
While the house was habitable, defects such as holes in the ceiling would cost tens of thousands of dollars to fix.
As McNamara is on maternity leave, the couple cannot afford to get these issues repaired at present.
'It’s definitely cost us a whole lot more than what paying for a different builder might have,' McNamara said.
Robb explained that Clarke Homes ceased trading once SV Partners took control, and a report for creditors would be issued soon.
Homeowners with defects are advised to hire another builder for rectification work, with the cost making them unsecured creditors.
There is hope for some Clarke Homes customers through the Home Building Compensation Fund (HBCF), which offers protection for defective or incomplete work.
Many homes built by Clarke Homes have an HBCF certificate.
This offers a safety net for homeowners when the builder is insolvent, deceased, or non-compliant with licensing regulations.
Clarke Homes and SV Partners have been contacted for additional comments.
In a previous story, we highlighted the distress faced by families left stranded after another building company’s goes bust.
To learn more about how this is affecting homeowners, read the full story here.
With the collapse of Clarke Homes leaving so many homeowners and contractors in limbo, what do you think needs to change in the building industry to prevent this from happening again?
Share your thoughts in the comments below.
