Under voluntary administration and having stood down two-thirds its staff, embattled property developer Bathla Group has left dozens of customers in limbo, with many wondering: What happens next?
Out of the company's 45 active projects, it is not yet clear how many will continue construction under the short-term funding lifeline announced on Monday.
However the property developer's administrator, Teneo, did confirm that construction would continue for projects commissioned by Bathla's five lenders.
But for single mum Casey, her dream home is now stuck at "gyprock stage" as she's "left in limbo".
Having first found out about Bathla going to voluntary administration over a social media post on its page, she said communication continued to be "very minimal".
"I've just been beside myself," Casey said.
"This is where we were going to get out of renting."
Approximately 213 of Bathla's 350 employees have already been stood down, as its administrators say they need more funding commitments if the group is to last beyond the next fortnight.
'Larger storm' to come
Chris Baskerville, partner at insolvency firm Jirsch Sutherland, said Bathla and its administrators were likely scrambling to figure out if projects like Casey's would be able to be completed if more funding is secured.
"Anything that is 80 per cent complete and above they'll be working out the commerciality to see if they can complete those builds," Mr Baskerville said.
"A half-built property or construction site almost has virtually no value."
Mr Baskerville said it was the largest Australian construction company he had seen "fall over" in more than 20 years.
He is concerned Bathla may not be alone, with others potentially to come.
"It's a culmination of things that has led here,"he said.
"We've had distress in real estate since the budget was announced in March.
"We're seeing a slowing down of new build applications, applications for new mortgages, but also we've got increasing costs of credit."
Companies' ability to survive under a slowing market depends on their margins, Mr Baskerville said, with some companies surviving week to week.
"Some entities have enough of a financial buffer in their balance sheets to meet their obligations, but some are running on razor-thin margins," he said.
"It's a highlight of a larger storm that I think is coming."
Mandatory independent ratings for builders?
Nine in 10 Australians believe they should have access to a register of independently rated builders, according to Equifax Australia.
Equifax created the Independent Construction Industry Rating Tool — or iCIRT — to help customers find trustworthy builders.
"The register lists rated companies that have been deemed trustworthy from an independent and rigorous review of their business," Equifax Australia explains.
It is not mandatory for companies to list themselves on such a register in Australia.
Because of this, the onus of verifying a company's ability to deliver a project falls on the customer.
Bathla does not have an iCIRT rating, according to Brad Walters, Equifax Australia's head of product and rating services.
"Consumers don't always have ready or easy access to independent or verified information,"Mr Walters said.
In lieu of enforced registers, Mr Walters said the best way for customers to protect themselves from being abandoned by their builders was to "seek independent verification of their credentials and capabilities".
The ACT will become the first jurisdiction in Australia to implement a licensing scheme to regulate property developers, starting next month.
But elsewhere, customers like Casey will continue to have to fend for themselves.
"I've got two kids, I'm trying to parent, work, and go about normal life," she said.
"I just wish [Bathla] could see the people, the real people, they were affecting in all of this."
