Homeowners pay thousands to exit contract with SBG Building Group after long delays

In a recent exposé by the Herald Sun, numerous homeowners have come forward with serious complaints against SBG Building Group Pty Ltd, a Cranbourne-based domestic building company, alleging prolonged construction delays, early invoicing, and a lack of communication. These issues, affecting projects across Melbourne’s southeast including Clyde and Cranbourne, have left families financially and emotionally drained — with some paying thousands just to terminate their contracts.

Customer Complaints Emerge Amid Stalled Builds

According to the Herald Sun, multiple clients reported that SBG continued to issue invoices despite months of inaction on their construction sites. For some, progress claims were made before the relevant stages were completed. Mr Rohan Maben, one of the affected customers, told the paper that although his building contract with SBG was signed in June 2022 and works commenced in February 2023, the project remains incomplete after more than 14 months.

Mr Maben described receiving a fixing stage invoice even though stairs — a key component — were not installed at the time. Though he ultimately paid the invoice “in good faith,” he claims no further works were undertaken. With mounting costs and no certainty of completion, he eventually sought legal advice and terminated the contract.

Another homeowner, who entered into a contract with SBG in September 2022, reported similar delays and lack of progress. After spending close to $10,000 on legal advice over four months, he is now pursuing a resolution through Domestic Building Dispute Resolution Victoria (DBDRV).

Both customers report that SBG has failed to provide essential compliance and warranty documents required for engaging a new builder. These include slab, frame, plumbing, electrical, and insulation certificates.

VBA Disciplinary Action Against SBG

These complaints follow disciplinary action taken by the Victorian Building Authority (VBA) earlier this year. According to the official VBA disciplinary register, SBG Building Group Pty Ltd was subjected to a partial suspension of registration for three years, a $20,000 penalty, and a reprimand on 18 February 2025.

The action was taken after SBG failed to comply with a dispute resolution order made by DBDRV for a property in Carrum Downs. The VBA’s disciplinary notice outlines that the suspension applies to all building work related to unresolved domestic building work disputes. As per the Domestic Building Contracts Act 1995, this includes work subject to a building order or direction to fix building work. The disciplinary outcome is currently under review by the Victorian Civil and Administrative Tribunal (VCAT).

Financial and Emotional Toll on Families

Affected homeowners, like Mr Maben, estimate that rectification and completion of their homes will cost up to $120,000. Others are struggling with legal fees, rent, and mortgage repayments while their homes remain half-built.

Raynal Kapadia, principal lawyer at Kapadia and Gordon Lawyers, told the Herald Sun that many SBG clients were assured work would resume “shortly” but were left waiting indefinitely. He added that seeking legal advice early can help reduce the long-term financial toll.

A representative for SBG Building Group “vehemently denied” the allegations and stated that the matters are yet to be resolved through the proper legal channels such as DBDRV and VCAT.