Builder's crash leaves couple high and dry in the Sierra townhouse development

It’s been five years since Liz and Rob Sharpe exchanged contracts on their $1.3 million, off-the-plan purchase of a new four-bedroom townhouse in the Sierra development in the heights of Narrabundah.

It was to be their retirement lock’n’go home. Now it’s a case of so near yet so far.

Sierra is a $22-million, 45-lot townhouse project in Leahy Close being developed by the Macedonian Orthodox Church.

The builder was Project Coordination, one of Canberra’s most reputable companies. But in the wake of the pandemic amid soaring material and labour costs and a tightening of finance, reputation wasn’t enough.

Project Coordination went into voluntary administration on 19 March. Administrator RSM advised the Sharpes officially by email on 22 March.

Since then, the couple has heard next to nothing apart from Deloitte advising them on 31 May that it had taken over management of Sierra from RSM.

“We are currently undertaking an urgent assessment of the company and the Sierra Project to explore the options that may be available for completion,” Deloitte said.

“In addition, work is required to collate information and understand the contracts and agreements that are in place regarding the Sierra Project.”

While most of the dozen incomplete Canberra projects have new builders, Sierra isn’t one of them, although Liz says he has been told that several builders have priced it.

A phone call to Deloitte a couple of weeks ago shed no light on the issue, with a spokesperson saying there was nothing to report.

The Sharpes say they have been patient enough, having to endure constant delays throughout the COVID period and afterwards.

Last year, they sold their home so they would be able to move in at Christmas, based on the latest advice from the builder about completion. Then it was to be in June.

For six months, the Sharpes rented a property, but since Christmas, they have been staying with relatives in Canberra.

“They have been very generous,” Liz said.

It is now more than four months since Project Coordination went down and the Sharpes are worried about possible rescission of their contract or extra costs to complete the project.

They believed they would be protected by legislation passed in December 2021 to prevent developers from walking away from contracts when there are delays, but it also includes a provision for extenuating circumstances, which might come into play in their situation.

She knows of two other buyers who have decided to rescind their contracts and get their deposits back but the Sharpe’s townhouse is so close to completion it isn’t in their interests to walk away.

“For us to buy that townhouse now in Narrabundah or Red Hill would be $1.6 million,” Liz said.

A former registered nurse and midwife, Liz works part-time in the health infrastructure industry and regularly travels for work.

The plan was to move into the new property and join Rob in retirement for the next stage of their life together.

That has all been put on hold.

“We just want to know where we’re at with our life,” Liz said.

“At the end of the day, they need to put options on the table.

“We were selling our house to go to this one in good faith, so we weren’t going to have bridging finance.”

Liz said they could still be in their old home, which they owned and would still be appreciating.

“It’s so frustrating.”

A Deloitte spokesperson said the Receivers hoped to advise on how they propose to progress the development by the end of August 2024.

Several consultants had been engaged to assist their assessment of the partly constructed development and inform options available to recommence construction.

“The Receivers are certainly conscious their appointment, and the prior Administrators, over the developer and builder has caused uncertainty for presale purchasers, and they have been communicating with this group on the progress of their work,” the spokesperson said.

“As Receivers of the project, the team has been working closely with various stakeholders, consultants, and the Administrators, to determine the right strategy to get work started again and the development completed.”