Marooned customers of a collapsed NSW granny flat builder have spoken out as their bills for unfinished work soar into the hundreds of thousands.
In August, news.com.au reported that NSW-based Rescon Builders Pty Ltd, trading as Rescon Granny Flats, went into voluntary administration at the end of June with over $3.9 million in claims against it.
As its name suggests, the builder specialised in granny flats and worked on projects across Sydney and the NSW south coast as well as The Central Coast and Newcastle.
On Monday night, some of the 50 affected customers spoke out.
Peter Reeve, a 67-year-old bus driver preparing for retirement, came forward to share his story with A Current Affair.
He said, “I keep sending emails to them, no responses, so I sent them an email asking them if they were in liquidation and still no response.”
Mr Reeve claims he has invested his retirement savings in a granny flat project, hoping to secure his financial future without relying on government support.
“My plan was never to be a burden on society. That was my plan,” he said.
He now faces additional costs of $95,000 for another builder to complete the project.
“I’m too old to get a loan. I’ve got to find $90,000, which will mean I’ll have no super left and not a lot else,” Mr Reeve told ACA.
Kylie and James, another couple who chose Rescon Builders to construct a granny flat for Kylie’s mother, also featured on Monday night’s program.
They initially paid $150,000 but have been informed that finishing the project could cost an astonishing $200,000 – reflective of the national average for a new home build cost ($320,238).
“There’s just been a lot of excuses and nothing other than that,” Kylie said.
Michael Roet, who inherited his mother’s home in southwestern Sydney and sought to build a granny flat to alleviate financial pressure, also grapples with the fallout.
Quoted $138,000, Roet has paid $131,000, and last saw a builder in March.
He said his attempts to contact Rescon Builders were met with silence, saying, “They would never answer any phone calls or reply to emails.”
While the firm’s website remains live, the only message greeting customers is a notice that Rescon Builders is now in the hands of administrators.
“On Friday 30th June 2023, Christopher Darin of Worrells was appointed as Voluntary Administrator of Rescon Builders Pty Ltd,” it reads.
It’s a different story for Timothy Cocaro and his wife Stella, the couple behind Rescon Builders, who have moved into the tech space recently.
Mr Cocaro is listed online as a founder of Canibuild, which launched in 2020 and sells itself as a “Visual Sales Tool changing the way you sell houses, pools, granny flats, and sheds”.
Ms Cocaro’s LinkedIn has her listed as Canibuild’s general manager.
Last month, news.com.au reported reviews from furious customers told others to avoid Rescon “at all costs”.
“They don’t respond to emails (and) the supervisor left unbeknown to me,” one wrote.
“When I complained to the insurer, they gave me another builder based in Brisbane this time but it’s taken Rescon six weeks to refund my excess.”
In 2017, Rescon won a Master Builders Association award. At the time, the company’s director, Timothy Cocaro, said he “couldn’t be more proud”.
News.com.au has contacted the Cocaros and administrators, asking when affected customers can expect more clarity on their situations.
Rescon Builder’s collapse marks the latest in a wave of building companies to collapse in 2023.
So far this year, over a dozen builders have collapsed as labour shortages and the rising costs of materials create a perfect storm.
Several other construction firms have liquidated, including three more in Melbourne – Construct Homes Pty Ltd, placed into receivership on Thursday, Kleev Homes, which owes $3.29 million to 162 unsecured creditors and Avra Group, leaving at least one family with an unfinished home.
Sydney building company Allura Homes Pty Ltd went into liquidation, plunging 39 homes into jeopardy, leading to 11 people losing their jobs and with debts of $3.3 million to 102 creditors.
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Earlier that same day, a prominent Western Australian builder, Modco Residential, went into voluntary administration.
Australia’s 13th biggest builder, Porter Davis, collapsed earlier this year, placing 1700 projects and another 779 empty blocks of land in jeopardy across Victoria and Queensland, while more than 1000 unsecured creditors owed a whopping $71 million.
– With Alex Turner-Cohen
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