A granny flat and home extension company has gone into voluntary administration, leaving a number of Canberra projects incomplete.
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Cubitt's Granny Flats and Home Extensions went into voluntary administration on Tuesday, February 27.
About 200 creditors are owed $3.8 million, according to liquidators RSM Australia.
There are about 120 building projects impacted across NSW and the ACT, including 11 in Canberra.
One of those customers said they signed a contract in late 2023, with construction expected to be finished by mid-2024.
The customer, who requested anonymity but is known to The Canberra Times, said she and other clients had been "left in limbo [and] have not been contacted at all".
"We found out through social media news and in that article were directed to contact the administrators," they said.
"There may be home owners that may not even know yet."
The customer said there needs to be more regulation for homeowners caught up when building businesses go bust.
"There are thousands of people that have been pushed into this situation over the last few years but no one seems to be concerned or build in protections for homeowners," they said.
"That this keeps happening despite homeowners attempting to do due diligence to avoid signing with companies that are already going downhill needs to be addressed."
There are also 60 sites across both states that are in pre-construction or have been completed and are awaiting final payments.
Cubitt's has a display office in Fyshwick, which the administrators are working to lock up.
The privately owned company has been building self-contained homes and extensions for 30 years.
Insolvency in construction businesses reached a 10-year high in the 2022-23 financial year, according to Australian Securities and Investments Commission data.
Directors Kate and Ian Cubitt said they had an "emotional meeting" with staff on Wednesday morning.
They had about 80 employees, including five in the ACT.
"We informed our loyal and hard-working staff in person where possible and remotely via video, some of whom have been with us for more than 25 years, of our decision," they said in a statement.
"We never thought we'd find ourselves in a position where we'd be saying goodbye to our staff, our business, and the many steadfast customers and suppliers
"It has been the toughest of days."
The first creditors meeting will occur in-person and virtually on March 7.
Cubitt's said it entered voluntary administration after "bank lending conditions, supply prices, taxation changes, insurance prices, COVID recovery and lengthy weather events" made surviving unsustainable.
"Cubitt's made the decision in 2021 to honour fixed-price contracts and not pass on price rises to their customers, bridging the shortfall and completing projects with significant loans to the company by the owners, Ian Cubitt, Kim Cubitt and Kate Cubitt, using their personal assets," the company said.
They are seeking a buyer.
"Our primary aim is to sell the business in its entirety, including, where possible, re-hiring employees and completing the projects that are on foot," administrator Richard Stone said.
"Any inquiries regarding Cubitt's voluntary administration or the sale of the business should be directed to cubitt@rsm.com.au."