A struggling major builder has written to scores of its clients, saying they need to pay tens of thousands of dollars extra if they want their homes to be completed, as the financial crisis deepens within the construction sector.
Glen Norris and Chris Herde 3 min read April 20, 2022 - 5:20PM The Australian Business Network
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One of Queensland’s largest builders is demanding tens of thousands of extra dollars from clients to complete their homes amid the deepening financial crisis in the construction sector.
Disgruntled clients of Underwood-based Oracle Building Corporation (which trades under a number of names including Oracle Platinum Homes) say they are being asked to pay cost variations of up to $122,000 before they can move into their homes, sparking a warning from the building watchdog to seek legal advice before paying any extra money.
The construction industry is facing unprecedented pressure following big hikes in material costs due to Covid-19 pandemic lockdowns and recent floods.
Oracle director Tom Orel sent a letter to one customer asking for an additional $50,000 on top of the contract price.
In the letter, Mr Orel said the increase was due to the “ongoing ripple effects” of the pandemic causing supply shortage for the entire construction industry.
The company is believed to be working on 300 new homes across Queensland with about half facing price increases.
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