Melbourne building firm Snowdon Developments is facing liquidation as reports of the company being unable to pay superannuation to staff surface, with customers and creditors serving notices on the company for failure to pay bills or deliver homes.
Snowdon is contracted by the state government to deliver social housing in Ballarat, with homes either under construction or planned for Delacombe, Lucas, Wendouree and Ballarat East.
A local source told The Courier they had attempted to serve a debt notice for unpaid bills on Snowdon Developments on Thursday morning, but staff were locked inside their Keilor office and company director Chris Sandner could not be found.
The company has debts totalling over $2.5 million with multiple creditors, and home owners with Snowdon or Snowdon-related contracts to build are reporting long delays in work or failure to start work, non-communication from the company, or are finding their contracts have been terminated or handed to other developers.
Staff reported they had not received superannuation payments since October 2021, and had since complained to the Australian Taxation Office.
In July 2020, Snowdon was given the contract to build 10 state government social housing units in Ballarat, following on from work in Lucas and Delacombe.
Member for Wendouree Juliana Addison announced the construction as part of the Andrews government's $5.3 billion social housing 'Big Build' across the state.
"We're kicking this off in Ballarat with eight new units in Wendouree and two in Ballarat East as part of the first phase of construction," Ms Addison said.
At the time then Snowdon Developments business development manager Dave Campbell said the development maximised land available for housing, while allowing living standards above the minimum required.
"To be able to utilise the land properly and get two or three families on a block - I feel good about these projects myself because it's helping people who need it," Mr Campbell said.
"The minimum standard for energy is six, and they've gone above to seven to keep the bills down and give residents better, more comfortable living."
The Courier is awaiting comment from the Department of Families, Fairness and Housing.
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