The Australian dream of owning a home is a vision that many of us hold dear, especially as we look towards creating a stable and comfortable environment for our retirement years. However, the journey to building that dream home can sometimes turn into a nightmare, as one family's harrowing experience with Australia's largest home builder, Metricon, has shown.

The family's aspiration to build their perfect abode has been left in tatters following a dispute over a staggering $100,000 increase in construction costs. This financial blow has forced them to make the heart-wrenching decision to sell their land and abandon their plans altogether.

A Melbourne family's dream of building a home has been shattered by Metricon's $100,000 price increase. Credit: Facebook / Metricon

This story comes at a time when the construction industry is under intense scrutiny. Metricon, a giant in the building sector, has faced its share of challenges, including intense speculation of financial troubles in 2022 and a brief stint at the top of NSW Fair Trading’s list for builders' complaints, which triggered an investigation.

The family's ordeal began when they were quoted $535,990 in November 2021 to build their dream home. With a new baby in the family and a deposit of $1,500 paid to secure the price for 12 months, they anticipated the construction would commence without delay. However, the process was anything but smooth.

As months passed, the family faced unexpected hurdles, including illegal dumping on their property, which incurred significant cleanup costs. Communication from Metricon was scarce, and it wasn't until news broke of Metricon's potential collapse that the family learned of any issues. By then, the price lock had expired, and Metricon was demanding an additional $77,000.

Refusing to pay the extra amount, the family sought resolution through the Domestic Building Dispute Resolution Victoria (DBDRV), only to be met with further delays. The matter was referred to the Victorian Civil and Administrative Tribunal (VCAT), where they faced a wait time of over 18 months.

The financial strain didn't end there. The family has been burdened with ongoing water and council bills, and their land tax bill has soared from $450 to $1,750. Attempts to sell the land have been futile, as potential buyers are wary of the tumultuous construction industry.

The emotional toll on the family has been immense. Nathan, the IT worker at the center of this dispute, shared his distress over the situation, revealing that the ordeal has led to nightmares and a profound sense of loss.

Metricon's response to the situation highlights the complexities of the building process. They cited delays caused by factors outside their control, including compliance requirements and rescheduling due to the customer's overseas travel. Despite not entering into a contract with the customer, Metricon refunded the $1,500 deposit as a goodwill gesture.

The broader implications of this dispute are significant. The NSW Building Commission has imposed five conditions on Metricon's construction licence, including mandatory training for senior staff and an independent audit to ensure compliance with legislative obligations.

For our readers, this story serves as a cautionary tale. When embarking on the journey to build your dream home, it's crucial to be aware of the potential pitfalls. Here are some tips to help protect your investment and peace of mind:

1. Research your builder thoroughly, including their financial stability and customer satisfaction history.
2. Ensure all contracts and quotes are clear and include contingencies for delays or price changes.
3. Stay informed about the progress of your build and maintain open communication with your builder.
4. Know your rights and the dispute resolution processes available in your state or territory.
5. Consider seeking legal advice before signing any contracts or when disputes arise.

The dream of building a home should be a fulfilling experience, not a financial and emotional burden. As we stand in solidarity with this family, we must also learn from their experience to safeguard our own dreams.

Key Takeaways

• A Melbourne family has had their dream of building a home dashed due to a $100k price increase by the building company Metricon.
• The family claims that Metricon failed to communicate any delays and demanded more money when the initial price lock expired.
• The customer has faced additional costs due to illegal dumping on their land and rising land taxes while trying to resolve the dispute.
• The NSW Building Commission imposed five conditions on Metricon's construction licence, and the NSW Fair Trading is investigating the company's contracting practices.

We invite you to share your thoughts and experiences with home building. Have you faced similar challenges? What advice would you give to others embarking on this journey? Your insights could be invaluable to fellow readers navigating the complexities of building their dream homes.

 

[Gezzabel]

It’s awful what has happened to this family. The big problem is that the cost of building materials has skyrocketed, and the building companies have to bear the brunt of the price increases. It’s cheaper for them to walk away, than lose money. I know that a contract is there to protect both parties, but it’s unfortunate that this is what is happening everywhere, and the reason builders are going broke. Also, it’s hard for most tenants who pay a lot of rent, when their lease comes up for renewal. People forget that the landlord has a mortgage too, and they don’t get cheaper interest rates than buyers who live in their own home. So when interest rates rise, you can bet the landlord gets a rise in loan payments too. They don’t have much choice but to increase rent. It’s a really difficult situation for all involved in the housing market, from every perspective. Gezabel.

 

[novezar]

There are quite a lot of prospective buyers having to try & sell half built houses because of huge blow out costs which they just can't afford.

It raises one "?' Was the house design too big to start with

 

[novezar]

Re my above, I'll finish off here.
Was the house design too big to start with ? Maybe the prospective's eyes & ideas were bigger than their stomachs ?
I'd sure hate being in their dilema. The house building industry is fraught with danger.

 

[magpie1]

Re my above, I'll finish off here.
Was the house design too big to start with ? Maybe the prospective's eyes & ideas were bigger than their stomachs ?
I'd sure hate being in their dilema. The house building industry is fraught with danger.

The builder is given a copy of the Architects drawings in advance as well as a good walk over of the site in order to provide a proper quotation to the owner. That should be the absolute price for the building unless in the contract there is other cost increase stipulations that must be taken into consideration and agreed to by both parties. The owner has the right to query the extra increases provided by the builder. The owner should never rely on the first quotation as being absolute in this day and age as goods and services are subject to price increases on a regular basis. It becomes a difficult situation for the buyer and they should always have additional funding at their disposal which will hopefully carry them through to the buildings finalisation.

 

[marni]

What happened to the clause Time of the essence. ? Or even fixed price contracts. The contract should go both ways. If the construction takes longer than anticipated you should be able to lodge a claim on the builder, if you cause the delay the builder has a claim on you. We built in the eighties when rain held the build up for months - we got no extra charges and we copped the extra rental expense each time