Assurance from A1: Homes will be built

A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.

A1 Homes says all homes will be finished as originally contracted if that is what the clients choose in the wake of Fargher Construction Limited going into liquidation.

Around 20 families, many of them in Gisborne, were left with unfinished homes after the financial collapse of Fargher Construction Limited (FCL) — the licensees for A1 Homes in Gisborne, Hawke’s Bay and Taupo.

Around the same number had paid deposits but no work had started.

A1 Homes said work would start for those clients.

The positive assurance to make it right for homeowners was followed by bad news for subbies and suppliers.

Head licensor and managing director of New Zealand’s A1 Homes Ross Thomas said he had sympathy for the sub-trades and the suppliers, but their contracts were with FCL and those parties needed to register any claims with the liquidator.

Pricewaterhouse Coopers was appointed as liquidator on February 23. It has been estimated FCL owes more than $1 million.

A1 Homes general manager Matt Cunliffe said in conjunction with Registered Master Builders Association of New Zealand, they would be putting an offer to all homeowners affected by the recent liquidation of FCL.

There would be no extra payments required from customers but he could not give a timeframe for when the builds would be completed as there was still a legal process to go through.

Mr Cunliffe said they would be working through the two main groups of homeowners affected.

“The first group being A1 Homes clients whose homes are well under way. Their new home builds all have Master Build guarantees, which will be upheld as per original contract with the Registered Master Builders Association.

“The second group of clients are understood to have paid deposits and signed contracts with FCL, without FCL lodging jobs or obtaining Master Builders Guarantees. This process will be more challenging as all deposits have been lost, with the liquidator classifying those clients as unsecured creditors.”

Mr Thomas said this was “completely unacceptable”.

“We are still trying to get a full understanding of Fargher Construction’s unorthodox dealings.

“It has been an extremely difficult week trying to ascertain how things have gone so horribly wrong and I know the stressful predicament this leaves a number of families in.”