Oracle collapses: Qld building giant plunges into liquidation

Underwood-based Oracle Building Corp – which trades under a number of names including Oracle Platinum Homes – made headlines earlier this year when it sought tens of thousands of extra dollars from clients to complete their homes amid the deepening financial crisis in the construction sector.

Robson Cotter Insolvency Group, which has been appointed liquidators of the firm, have been contacted for comment.

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Oracle joins a growing list of Queensland building firms hitting the wall in the past 12 months amid a growing crisis in the sector. Privium Homes, BA Murphy and Condev are among those that have collapsed owing millions of dollars.

Creditors and suppliers have been circling Oracle in recent months over unpaid debts with one taking a caveat over the $5m Gold Coast mansion in which Mr Orel lives with his wife.

Clontarf-based Dynamic Bradview Roofing launched Supreme Court action this month to recover $910,000 from Oracle over the supply of building materials for homes across Queensland and NSW.

At least two other suppliers – Raven Roofing and Regency Showerscreens and Wardrobes – also had launched debt recovery actions against Oracle.

As its financial situation deteriorated, Oracle demanded up to $120,000 from some home builders before they could move into their homes, sparking a warning from the building watchdog to seek legal advice before paying any extra money.

In a letter from Oracle director Tom Orel, the increase was blamed on “ongoing ripple effects” of the pandemic causing supply shortage for the entire construction industry.

At the time it was understood the company was working on 300 new homes across Queensland with about half facing price increases.

Clients continue to complain about lengthy delays, some of up to a year, to complete new homes. Mr Orel wrote to tradespeople earlier this month stating that the company could not pay suppliers

He said that the company was “still waiting for a number of external settlements which have not occurred and we regret to inform you that there will be no payments made today.”

“I reiterate and say all payments have been administered on our end and are ready to go,” Mr Orel wrote in the email. “As soon as the funds hit our account the payments will be processed. Thank you again for your support as we navigate these times and we will continue to keep you updated of any changes.”

Oracle customers have taken to Facebook this morning to attack the failures of the company. “During the course of our time with Oracle, my mental and physical health have been substantially impacted. I know I’m not alone in this. Not to mention how my family has suffered,” said one customer.

“The thing I struggle with the most in dealing with Oracle is their lack of communication and transparency. It is because of the way they have handled themselves that people are in this situation. The situation being their lives. The bigger they are, the harder they fall.”

Jess Petersen wrote: “We signed January last year and they poured our slab April this year in a rush because the bank was going to close our construction loan and they weren’t going to get any money”

Janet Brooker posted: “My granddaughters house after two years is still only a slab and half a frame. Absolutely atrocious.”

Oracle’s collapse is part of a wave of Queensland company collapses costing hundreds of millions of dollars.

Last week Brisbane-based Besse Construction with 30 employees collapsed owing $1.7m before luxury home specialists Solido Builders and Pivotal Homes on the Gold Coast sent into liquidation.

In March mid-tier Condev collapsed with 18 projects across the Gold Coast. The company was founded and led by Steve and Tracy Marais, who cited rising construction costs, supply chain issues and the recent floods for adding pressure to already slim margins as teh reason for alling the administrators.

Interstate other failures include Inside Out Construction, Dyldam Developments, Home Innovation Builders, ABG Group, New Sensation Homes, Next, Pindan and ABD Group.

Last year Privium, BA Murphy and Probuild were the big names that folded.

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