Another building company to go under?

In the midst of a building boom!

NZ Building company in financial strife - reports

The Hamilton city council says it is aware of concerns about the financial status of building company, Starplus Homes, but has had no official notification.

TV3,

12 April, 2013

There are unconfirmed reports the company has ceased trading and owes as much as $20 million to creditors.

Phone calls to the cut-price building company are going unanswered, and there are fears unfinished building projects in Auckland and Hamilton may now be under threat.

The company had been offering guarantees, but Registered Master Builders' Federation chief executive Warwick Quinn, says it's unclear whether Starplus will be able to honour them.

"At the moment there could only potentially be a written guarantee or words that the company will come back [and finish the projects] and that is only any good as long as the company is in existence," he says.

Mr Quinn says Starplus is not a federation member, which means there isn't clarity over what type of financial redress those potentially left out-of-pocket will have.