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Posted: 2022-04-08 19:00:00

The business’s website is down but archived pages include a blog post from February that said the business had hired extra support staff and started up its own team of bricklayers to tackle its workload.

“With supply chain issues and border restrictions, it’s fair to say WA builder’s have had to adapt (or bust)!,” it said.

“Whilst we couldn’t predict these effects, we sure have found ways to work around them and continue building Perth families sensational homes.”

One New Sensation Homes customer, who did not wish to be named, said they had difficulties getting in touch with the builder recently and there was still outstanding work left to finish her home.

“For the past two weeks emails are coming back saying due to staff shortages from COVID they are out of office and will get back to me,” she said.

“My house needs a garage door, driveway paving, alfresco paving and a few power points inside and that’s it.

“I started this process in November, 2020, and was told I would be in the house by December, 2021.

“I am at the point where I don’t even want the house and any excitement I had about building my house is gone.”

Affected customers have been told to get in touch with the liquidator WA Insolvency Solutions who took over the company on Friday.

WAIS managing partner Jimmy Trpcevski said he understood it was a difficult time for all the people impacted by the collapse of the company and the liquidator would be liaising with impacted parties in the coming days.

Builders face cost-crunch

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Master Builders Association of WA executive director John Gelavis said businesses in Australia were facing a cost and cash-flow crunch that was putting pressure on them to stay afloat.

He said cost increases had been significant, around 30 to 40 per cent, as global and national supply chains were facing several issues.

A new tariff on engineered wood products out of Russia, due to the war with Ukraine, is one of the latest challenges facing the industry, according to Mr Gelavis.

Delays on material delivery due to shortages and high costs means builders can struggle to reach the milestone payments needed to keep them operating.

“With those delays and prices that can’t be passed on it’s creating this crunch,” Mr Gelavis said.

“These cost increases ... are few and far between under normal market conditions.

“These are not normal increases these are significant double-digit increases.

“The federal government needs to adopt policies that help small businesses.”

Mr Gelavis said there was still a skilled labour shortage in the construction sector as he called for more skilled migration and the end of the vaccine mandate on workers to address the problem.

He said customers should try to stay in contact with their builder and be understanding of the pressures facing them.

“Builders don’t want to take longer then they need to, to build homes,” Mr Gelavis said.

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