Kit home customers fall through cracks | Bundaberg News | Local News in Bundaberg

Kit home customers fall through cracks

SUE and Steve Stanger face the miserable prospect of a second loan on their Avondale plot, after falling through the cracks between the Building Services Authority and the Office of Fair Trading.

Like Shane McMullen, who was arrested on Sunday after a confrontation with Public Works Minister Robert Schwarten, the Stangers paid Steelsmart Homes for a kit they have never received.

Mrs Stanger said the couple had no help from the Building Services Authority (BSA) because they were owner-builders, and they had little hope of assistance from the Office of Fair Trading.

“You've got to get a BSA licence to build the home - yet they won't help us,” Mrs Stanger said.

She said the BSA should have more powers to assist former Steelsmart Homes customers, particularly due to the company's close ties to Coral Coast Homes.

“We ordered bricks and window fittings through (Steelsmart Homes), and they used the same BSA number as Coral Coast Homes,” she said.

But Public Works Minister Mr Schwarten said that consumer protection legislation in Queensland was structured around consumers contracting with a licensed building contractor for both the supply and construction of their home.

“Whether or not the components of the home are in a kit form is of no concern to the consumer, provided they enter a contract with a licensed building contractor which incorporates the kit as part of the total contract price,” he said.

“It was for this reason that the BSA was able to assist the majority of clients who had contracts with Coral Coast Homes Pty Ltd for construction based on a kit.

“People who purchase a kit home with the intention of constructing it themselves as an owner-builder need to take the same precautions as any prudent consumer would take when making a substantial purchase.”

He said customers should consider paying only a small deposit, and putting money into trust, with the bulk of the purchase price paid when goods were received.

 
Bundaberg News Mail  

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Posted by Predictor from Moore Park, Queensland

02 September 2009 2:38 p.m. | Suggest removal » | Post reply »

I'm totally agree with the Kit home customers. It is not their fault that the building company got bust.
They paid money for goods they never received and therefore they have to be compensated regardless what...! Mr. Schwarten talking his way out of paper-bag just to establish a time consuming stretch-out rubber law. This is a typical Qld politician nature just waffles doing nothing..!
BSA is a tiger with no teeth and let's face it, they charge Builders and proposed home owners insurance premiums and license fees..! So what we waiting for..??? This is the same having a tenant who doesn't pay his rent but using your own facility and infrastructure and as I can see it, everything's in this state is based on excuses and procrastinating arguments ..?? Come on, get things moving and show VALUES for once to the Consumers...!

Posted by andrewatubuild from Mount Cotton, Queensland

06 September 2009 7:26 p.m. | Suggest removal » | Post reply »

How does a Kit Home Company go broke? It just shouldnt happen. The problem exists because the parent company, which was a building company, went broke and took all the subsidiary companies with it. In theory a kit home company should not go broke. It should be cash flow positive from the outset because all its doing is providing a packag of specified building materials, plans and a system for the consumer/owner builder. Consumers need to ask tougher questions of kit home companies to find out what other companies it is supporting. Unfortunately there is no genuine protection so we suggest Buyer Beware and Trust No One as good motto's. For more on the subject you can go to
http://ownerbuilderadvice.com/kit-hom...

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