Modco Residential has left 29 residential building projects unfinished after appointing administrators, according to the building industry watchdog.
Collapsed Perth builder Modco Residential has left 29 residential building projects unfinished after appointing administrators, according to the building industry watchdog.
In a statement released today, Building and Energy said it understood Modco was directly contracted for 29 residential building projects that were yet to be completed.
Building and Energy also advised homeowners engaged with Osborne Park-based Modco to contact a home indemnity insurance provider.
It comes after Modco entered voluntary administration on Sunday and its external administration notice was published on the Australian Securities and Investment Commission’s website today.
Building and Energy executive director Saj Abdoolakhan said people with contracts and home indemnity insurance policies with Modco Residential should contact QBE to discuss arrangements.
“This enables homeowners to begin the process of engaging another registered builder to complete the work or to pursue other remedies,” he said.
“In other cases, people may have thought they were clients of Modco Residential but their building contract, building permit and HII [home indemnity insurance] are in fact with another builder.
“These homeowners should contact the builder named on the building contract to discuss arrangements for the completion of their homes.
“Building and Energy can take action against other building contractors if they are found to have engaged in improper conduct.”
GTS Advisory has been appointed as the administrator to Modco, which was founded by Cynthia Lu and Yusuf Khan during the pandemic.
After entering voluntary administration last week, the builder released a statement to its stakeholders while simultaneously taking a swipe at the media.
“Despite our efforts to overcome adversities expected in building a growing business, the rapid and unforeseen external challenges ranging from unprecedented industry challenges, perpetuated by a series of controversial articles that created distrust amongst stakeholders, became an insurmountable challenge,” the statement read.
The statement added it hoped “the close of Modco will be a catalyst to highlight the need for systemic change and industry support to address the issues that persist within the construction sector.”
Modco has faced court action and has been the subject of warnings from the building industry regulator in recent months.
In May, Building and Energy issued a warning about Modco’s financial status, unpaid subcontractors, inactivity on projects and premature demands for progress payments.
In July, Business News revealed that Modco owed more than $28,000 to recruitment firm Torquejobs, from three unpaid invoices.
