Homebuyers in Adelaide's south, stranded by the collapse of builder Felmeri Homes, can now access their properties to complete their unfinished houses.
In an important milestone, the Department for Infrastructure and Transport has completed minor works for the internal roadway to the 20 homes at O'Halloran Hill, allowing builders and owners to access the sites.
The Malinauskas Government announced last month it would step in to provide an infrastructure solution for the families after Felmeri Homes went into liquidation, leaving many projects unfinished.
The Government underwrites mandatory Builders' Indemnity Insurance, which protects homebuyers against financial loss if a builder dies, disappears or becomes insolvent. That insurance is available to many of Felmeri's customers who have homes under construction.
However, customers at the O'Halloran Hill development were unable to use the insurance settlements to finish their homes because the developer had not completed internal roadworks, leaving a trench down the middle of the roadway, meaning other builders could not safely access the homes.
The Government engaged South Australian contractor Bardavcol Pty Ltd to fill the trench and level the internal dirt roadway, providing initial access to the properties, as well as removing rubbish and debris from the site.
Investigations are underway into the condition and extent of existing utilities and common services, including stormwater, and this work is expected to continue over the coming weeks. Once these works are completed, the Department will inform homebuyers of the next stages of work, the concept design for the new bitumen roadway and road access to Main South Road and the timing of works. The Department is committed to continuing to provide regular updates to homebuyers.
The Government is considering options on how to recoup costs from Felmeri for the cost of the road.
As put by Tom Koutsantonis
Providing access to these properties is the fundamental first step, allowing these families to complete their homes and fix this mess that was not their making.
There is still a significant amount of work to occur before the internal road is built.
While this will not happen overnight, I have asked my Department to consider how the works could be completed as quickly as possible so the affected families can get on with their lives.
As put by Andrea Michaels
The completion of this stage of works on the road means these families can finally get access to and finish their homes.
They were left stranded by Felmeri, but the Government has stepped in to build the road and put an end to the nightmare that these families have been forced to live through.
Consumer and Business Services will continue to investigate Felmeri's conduct and we will prosecute if there are grounds to do so. We will also seek to recoup costs from Felmeri for the cost of building the road.
As put by Erin Thompson
It should have been a happy and exciting time for these families, many of whom are building their dream home.
Instead it's been a living nightmare.
I am pleased that our Government has taken such swift action to progress these necessary works.
The works on this road offer a light at the end of the tunnel for these families who have suffered for years.
I will continue to offer my support and look forward to seeing the builds near completion.
