Third GJ Gardner Homes franchise collapses leaving customers with half-built homes: ‘My site is abandoned’

Another building firm has collapsed leaving customers in limbo with unfinished homes.

The third GJ Gardner Homes franchise, operated by LV Built in Tasmania, entered liquidation and closed on April 2. 

‘The situation with the former G.J. Gardner Hobart West franchise is very unfortunate for all involved,’ GJ Gardner Homes CEO told News.com.au.

‘At this time, our primary focus is for the impacted customers and their homes. We have begun working with the appointed liquidator and are speaking with each customer to better assess the situation and their individual circumstances.’

The news comes after two other G.J. Gardner franchises collapsed last year. 

A franchisee in Springfield, Queensland, declared itself bankrupt, and a Perth West franchise entered liquidation. 

Their demise has been part of a worrying trend in Australia with more than 2,000 construction firms collapsing in the 2022-23 financial year amid labour shortages and the rising costs of building materials, power and fuel. 

Issues had been piling up long before the Hobart West franchise announced it would go into liquidation. 

Building defects, approved plans not being adhered to, almost complete stoppages of work, contractors alleging money was owed and finished houses that still needed months of expensive remediation work.

Customers had been allegedly asking GJ Gardner Australia to do something for over a year but the franchisee was allowed to continue to operate.

Customer Akinola Ekundayo signed a contract in August 2021 with LV Built, but thought it was with GJ Gardner. 

Work had begun in July 2023, but stopped when a downpour in October caused one of their retaining walls to partially collapse.

LV Built tried to fix the wall but a building surveyor issued a notice to the council for work to stop. 

‘It looks abandoned, my site is abandoned. Nothing is going up here,’ Mr Ekundayo said. 

Despite the family complaining to GJ Gardner, nothing has been done to fix the build.

‘LV Built trading as G.J. Gardner Hobart is your builder, not G.J. Gardner Australia. We cannot build for you, nor take over the build from Ludek … at LV Built,’ G.J. Gardner reportedly told the Ekundayos in an email. 

Owen Knight, another customer, said he immediately noticed problems with his Huon Valley build and said a portion of the slab ‘was missing’.

Mr Knight said that was just one of the structural issues which also included an incorrect roof pitch, a chipped moisture loop in the garage and blocked floor waste.

Another customer, who wanted to stay anonymous, said they also had problems with the corners of their slab that had fallen away.

When their house was completed early, they were shocked to discover missing plumbing, and many other things incomplete.

Their fears were confirmed when an independent building inspector found almost 50 pages of substandard and incomplete work. 

The Hobart franchise still has 30 homes under construction and Liquidator Rodgers Reidy is contacting each customer and subcontractor.

Meanwhile, GJ Gardner homes said it will help customers find new local builders.

The nationally-recognised home builder said it had been slow to act because of ‘difficult trading conditions’. 

GJ Gardner said that once they were aware of the issues they provided support and ‘guidance’ to help the franchisee with its ‘operations and finances’. 

G.J. Gardener will not renew its contract with LV Built once it expires later in the year.

Daily Mail Australia contacted GJ Gardner Homes for comment.