Builder's crash hits charity

Work stopped on this Kaiti section due to subcontractors not being paid. File picture

A HABITAT for Humanity house has been caught up in the collapse of Gisborne’s A1homes.

Another family came forward overnight to say they had paid a $100,000 deposit for an A1 kitset home but now have nothing to show for it.

Fargher Construction Limited (FCL), which holds the licence for A1homes in Gisborne and Hawke’s Bay, has gone under with outstanding debts of more than $200,000 owed to sub-contractors, clients and businesses in Gisborne alone.

Work has halted on at least five A1 houses around the region, all in various stages of completion.

Last night offers came in from three sub-contractors who wanted to help finish a Gisborne family’s home, which has been left 95 percent complete but not livable.

The family found out three days before they were due to move in that work had stopped on their A1 house.

The Habitat for Humanity house was destined to be a rental property for a family on the waiting list for Ministry of Social Development (MSD).

It was about to have a roof put on but now sits surrounded by scaffolding on a back section in Kaiti with no one working on it.

A1homes general manager Matt Cunliffe said there was a complex legal process to work through.

“That is what we are currently doing. Once we have this information, we will work with FCL and the homeowners with the intention of ensuring that the homeowners’ builds are completed.

“A1homes was aware that FCL, which is an independently owned and operated business, had recently stopped work on its current builds.”

The biggest frustration for most of the people caught up in the collapse was the lack of information and contact from both A1homes and FCL when things went bad.

The couple who paid a $100,000 deposit to FCL for an A1 kitset home say the situation is highly stressful.

“As far as we knew, everything was still progressing and it was just lucky our builder heard something on the grapevine and knew what was happening.”

The couple have employed their own builders but work still had to stop because frames they ordered for their kitset home would not be released from the supplier due to FCL not paying their bills.

Now they have a section with just their home’s foundations on it.

The couple have insurance through A1homes, which they hope will cover them.

A1homes has been a long-term partner of Habitat for Humanity in Gisborne and elsewhere. Habitat for Humanity funds building new homes for families in need.

Central North Island general manager Nic Greene said he was still confident the house would be available for a Gisborne family to rent in a few months.

Builder Brendan Fry said he and other contractors were doing all they could to see if they could take over the contracts and finish homes for families in Gisborne left stranded.

He, too, is owed money and still trying to get hold of A1homes.

Another Gisborne family contacted The Herald last night.

They gave $4000 to FCL for plans and were just days away from putting in their deposit and sending it to the council.

“We had to find out about this situation from a subcontractor. I don’t even blame the lady who used to manage the office here in Gisborne. She was sweet and always helpful.

“I really feel for the others who have been let down, particularly those with homes almost completed.

“I don’t think anyone has had answers yet.”

A HABITAT for Humanity house has been caught up in the collapse of Gisborne’s A1homes.

Another family came forward overnight to say they had paid a $100,000 deposit for an A1 kitset home but now have nothing to show for it.

Fargher Construction Limited (FCL), which holds the licence for A1homes in Gisborne and Hawke’s Bay, has gone under with outstanding debts of more than $200,000 owed to sub-contractors, clients and businesses in Gisborne alone.

Work has halted on at least five A1 houses around the region, all in various stages of completion.

Last night offers came in from three sub-contractors who wanted to help finish a Gisborne family’s home, which has been left 95 percent complete but not livable.

The family found out three days before they were due to move in that work had stopped on their A1 house.

The Habitat for Humanity house was destined to be a rental property for a family on the waiting list for Ministry of Social Development (MSD).

It was about to have a roof put on but now sits surrounded by scaffolding on a back section in Kaiti with no one working on it.

A1homes general manager Matt Cunliffe said there was a complex legal process to work through.

“That is what we are currently doing. Once we have this information, we will work with FCL and the homeowners with the intention of ensuring that the homeowners’ builds are completed.

“A1homes was aware that FCL, which is an independently owned and operated business, had recently stopped work on its current builds.”

The biggest frustration for most of the people caught up in the collapse was the lack of information and contact from both A1homes and FCL when things went bad.

The couple who paid a $100,000 deposit to FCL for an A1 kitset home say the situation is highly stressful.

“As far as we knew, everything was still progressing and it was just lucky our builder heard something on the grapevine and knew what was happening.”

The couple have employed their own builders but work still had to stop because frames they ordered for their kitset home would not be released from the supplier due to FCL not paying their bills.

Now they have a section with just their home’s foundations on it.

The couple have insurance through A1homes, which they hope will cover them.

A1homes has been a long-term partner of Habitat for Humanity in Gisborne and elsewhere. Habitat for Humanity funds building new homes for families in need.

Central North Island general manager Nic Greene said he was still confident the house would be available for a Gisborne family to rent in a few months.

Builder Brendan Fry said he and other contractors were doing all they could to see if they could take over the contracts and finish homes for families in Gisborne left stranded.

He, too, is owed money and still trying to get hold of A1homes.

Another Gisborne family contacted The Herald last night.

They gave $4000 to FCL for plans and were just days away from putting in their deposit and sending it to the council.

“We had to find out about this situation from a subcontractor. I don’t even blame the lady who used to manage the office here in Gisborne. She was sweet and always helpful.

“I really feel for the others who have been let down, particularly those with homes almost completed.

“I don’t think anyone has had answers yet.”

Liquidators appointed

PricewaterhouseCoopers (PwC) have confirmed they have been appointed as liquidators of Fargher Construction Limited FCL as of today.

PwC named John Fisk and Marcus McMillan as the liquidators.

FCL is a home building company that has the A1homes licence in the Hawke’s Bay, Taupo and Gisborne areas.

Liquidator John Fisk said they would be contacting customers as quickly as possible.

“Consistent with our obligations under the Companies Act, we will provide a statutory report to all known creditors of the company within the next five working days.

“The liquidators are yet to determine the full extent of creditor claims.”

Mr Fisk said the company’s shareholders made the decision to put FCL into liquidation due to ongoing cash flow pressure.

“While it is still early in the process, we will be reviewing the position of the company, and will look to determine the most appropriate way forward in order to maximise returns to creditors.

“We will look into the events that led to liquidation of the company to see if there are any avenues where there may be further recoveries available.

“It is our intention to work with A1homes to evaluate the options for those customers who may have incomplete homes.”

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K.Oliver, Napier - 1 year ago
No communication, piss-poor management and hiding under the blankets.

Ange Rice, Napier - 11 months ago
We were one of the A1 homes victims - paid the Farghars $5k for plans, an $18,000 deposit in December and found out from a builder friend that A1 were in trouble just days before they closed their doors in February. I had to call them to confirm the rumour. Gutted to say the least! Also discovered that although we have screeds of paperwork saying we had a Master Builders guarantee it was never lodged with Master Builders so worth diddly squat.

We're not going to sit back and accept this so next step is Fair Go. Anyone who would like to join us is welcome!

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