Tradies Walk Off Site Amidst Defects, Debts, and Legal Disputes

Serious Disruptions at Ormond SDA Build

A multistorey apartment development in Ormond, southeast Melbourne, designed to provide 24 apartments—15 of which are specialist disability accommodations (SDAs) under the NDIS—has been plagued by walk-offs, legal disputes, and regulatory scrutiny. The Two Birds project, led by builder Roberts Construction Group (RCG), has been under construction since 2022 and now finds itself in turmoil with tradies alleging unpaid debts and the Victorian Building Authority (VBA) identifying numerous defects.

Tradies Abandon Site Over Alleged Non-Payment

Several contractors claim they are owed substantial amounts by RCG, with claims reportedly totalling nearly $1 million. Among them, David Drummond, director of Drummond Carpentry Services, stated he was left $200,000 out of pocket, later winning $208,000 plus costs in a County Court ruling. However, a garnishee order revealed RCG had only $108.28 in its Westpac account at the time. Mr Drummond has since launched winding-up proceedings and anticipates $125,000 in legal costs.

Other contractors also initially joined the application:

• Aspire Stairs – $10,000

• D Squared Electrical – $44,000

• G2K Carpentry – $17,000

• Earthwood Villa – initially $6,000, later revised to $112,000

• Ability Plaster – $79,000

• Beenak Concrete and Formwork – $270,000

• Formcode – $278,312

RCG has disputed all debts and claimed that many of the works carried out were defective.

Site Mismanagement and Claims of Unsafe Practices

Tradies have reported unsafe conditions and inconsistent project leadership. Mostafa Ghal, director of MZ Plastering and Painting, was hired to complete plastering on an hourly rate. He later claimed to be owed around $9,000 after his contract was abruptly terminated. Mr Ghal alleged that other tradespeople had warned him about issues on the site, prompting him to insist on daily payments that later ceased.

Adam Dew, a former site manager, said he resigned after only four months in 2022, citing poor management and safety concerns. He claimed Roberts Construction withheld $1,800 from his final pay to cover a council fine related to a skip bin, a deduction he disputes.

Regulatory Investigations and Builder’s Defence

The VBA confirmed it has issued a direction to fix 23 alleged defects at the site. If left unresolved, RCG could face fines up to $500,000. Investigations are ongoing into the architect, builder, and building surveyor involved.

Despite the allegations, RCG director Theo Kerlidis maintains the company is not insolvent and insists that disputes arose from a subcontractor failing to take responsibility for defective works. He also stated the Ormond development is a family-run project aimed at delivering high-quality care-focused housing.

Mr Kerlidis is also linked to another company, 146 232 340 Pty Ltd (formerly Longboat Development Group Pty Ltd), which appointed restructuring partners in 2023 while owing the ATO $888,000. That restructuring plan was rejected in September.

Questions Over Builder’s Legitimacy

Although not a registered builder, Mr Kerlidis is listed as the owner-builder and is a registered architect. This classification permits him to conduct building works over $10,000 only if he owns the property—a condition he reportedly satisfies. However, both the VBA and the Architects Registration Board of Victoria are reviewing the legal standing of this arrangement.

Additionally, Mr Kerlidis is also the sole director of Apeiron Homes, the registered SDA provider for the project. The NDIS Quality and Safeguards Commission stated the provider met registration requirements and has received no complaints.