A property owner could tell things were about to go terribly wrong with their GJ Gardner Homes Hobart build in early 2023, but it seemed like no one was listening.

The agricultural drain — meant to move water away from the house – had not been installed at all, despite the slab already being poured.

The owner wrote to Tasmania's building regulator, the Consumer Building and Occupational Services (CBOS).

Owner: "I think we need some serious help with the build."

CBOS: "There is a limited amount I can do other than attempt to have GJ Gardner Hobart agree to take action voluntarily — which you should also be working on from your end."

Then things got worse.

When the drain was finally installed, it was at a lower level than the next drains in the system. The owner spotted a range of other problems with the external plumbing.

Their fears were realised.

Extensive wet patches started to emerge around the outside of the house, despite no rain, and the ensuite toilet started to back up before it was even used.

Not only had the external drainage failed, the sewer pipe had been cracked during construction.

CBOS: "No breach of the Contracts Act has occurred at this time because a remedy is being offered by the contracted builder. CBOS is unable to take any further action against the contracted builder."

Owner: "This is complete BS … what sort of service is CBOS other than bureaucratic?"

It took over a year, the franchisee to go into liquidation, three plumbing contractors and thousands of dollars for the problems to start being fixed.

This is just one out of 19 house builds by GJ Gardner Hobart that CBOS was aware of that had increasingly poor works and long, unexplained delays.

House after house, complaint after complaint

LV Built, the franchisee of GJ Gardner Homes Hobart, went into liquidation on April 2, the same day its director, Ludek Valta, was emailed questions by the ABC about a long list of angry customers and contractors.

The ABC then applied under right to information for complaints data from CBOS covering 2018 to 2024.

The file was so large it wouldn't fit in an email, so it was mailed on a USB instead.

It showed an escalating severity of problems, starting in 2018 with a report detailing potential defects against the National Construction Code, and work completed contrary to approved drawings.

As the years passed, the different home owners across southern Tasmania were becoming increasingly exasperated:

June 2021: "I believe GJ Gardner are deliberately withholding contact"

May 2022: "The trusses had given way and were no longer supporting the ceiling"

July 2022: "We have been practically begging … and he is giving us nothing back. We have literally had our own toilet waste coming back up and filling our sinks … we are so tired of fighting"

September 2022: "Even if they do come back and fix the bricks like they have said they will, it will never look the way we want it to"

July 2023: "I hadn't realised how extensive the problems are, nor the extent of re-work that will be necessary … we are now at a loss as to what we can do"

December 2023: "Got an emergency electrician who removed the light fitting in the laundry and it was full of water … the plumber traced the problem to an unwaterproofed shower"

April 2024: "I am a single mum that has really battled to get into my dream home and this has all brought me to my knees"

There were works completed without council approval, work certificates unable to be found or non-existent, stop work notices and some works completed without evidence of pre-inspection.

CBOS's response was to remind home owners of their rights under consumer and contract law, suggest they seek legal advice, or for its officers to send GJ Gardner Hobart lists of questions, and try to act as mediator.

"CBOS can investigate complaints of work that is non-compliant, but that does not trigger a remedy to the consumers," it told one home owner.

And in the case of Remy Sedelaar, he was not informed of a serious problem at all.

A house without occupancy permit

Mr Sedelaar's GJ Gardner house construction in the Hobart suburb of Lenah Valley was beset with defects and delays. He was entitled to $150 per week as compensation, despite having to pay $550 a week in rent while he waited.

But he was at least able to move into the house in 2021.

When GJ Gardner Hobart went into liquidation, he tried to find slab and frame certificates for his house.

The local council gave him some troubling news.

"They turned around and said to me that I didn't have an occupancy permit," Mr Sedelaar said.

The CBOS complaints data had the answer.

It turned out the building surveyor had revoked the occupancy permit four days after issuing it in 2021, because GJ Gardner Hobart had completed subfloor frame work that was contrary to the approved plans.

The surveyor copied CBOS into the email — but nobody told Mr Sedelaar.

He's managed to achieve an occupancy permit since then, but believed both CBOS and GJ Gardner Homes national should have done more.

"That's their job, isn't it? They've only got one job," Mr Sedelaar said.

Maximum compensation doesn't come close

The collapse of GJ Gardner Hobart was not the end of the problems for some of its customers.

About 30 houses were still being constructed, including for the Ekundayo family, who had earlier had their retaining wall collapse, along with extensive delays and cost blowouts.

They were among those directed to the state government's Financial Assistance Package for people affected by builder collapses.

They received the maximum amount.

"We feel nobody has been held responsible."

He said they had to find their own builders to complete their house, and works are finally progressing after years of delays.

But he felt like consumers had been completely unprotected.

"The question we want to ask the government is: why [were you] allowing a company like this to function?" Mr Ekundayo said.

Regulator had powers to stop contracts being signed

CBOS started an audit of the builder's licence of Mr Valta, the franchisor, in January this year covering building works on 29 houses.

It then placed conditions on his licence on March 27, preventing him from entering into contracts or carrying out building works worth more than $20,000.

The company entered liquidation a week later.

Liquidator Shelley Brooks, from Rodger Reidy, said a preliminary assessment showed that LV Built may have been trading while insolvent since at least April 2020.

Unsecured creditors are owed $1.9 million, but that doesn't include all home owners.

Ms Brooks said the figure is likely to increase as more houses are completed by other builders.

There is also $200,000 in debts to secured creditors, and just under $60,000 owed in employee entitlements.

Ms Brooks said she has lodged her report with the Australian Securities and Investments Commission (ASIC), but it had confirmed it would not be taking action against Mr Valta for alleged insolvent trading.

Mr Valta did not respond to a request for comment.

Works were mainly 'unsatisfactory' rather than 'defective'

The ABC asked CBOS why it did not use its powers to place conditions on Mr Valta's builder licence sooner to prevent new contracts being signed, when it had substantial evidence of substandard works.

In a statement, CBOS said the majority of works were "unsatisfactory" rather than "defective", which guided its response to complaints.

Last year, the Tasmanian government passed laws to introduce mandatory insurance for consumers when builders become insolvent, like in other states.

It will also allow consumers to take complaints against builders to the Tasmanian Civil and Administrative Tribunal.

Complaints made directly to GJ Gardner Homes were not included in the CBOS data, unless consumers contacted CBOS at the same time, so it's unclear at what stage and to what extent GJ Gardner Homes became aware of worsening issues.

"Should a complaint be escalated nationally, we act as a mediator between franchise owners and their customers, assisting both parties in the building contract to come to a resolution," GJ Gardner Homes said in a statement.

The national company said it provided "guidance and support" to LV Built when it became aware of its worsening financial situation. It said its financial oversight of franchisors had improved.

"We provide leadership and a dedicated team of professionals who conduct regular reviews of franchise business information and financials," the statement reads.