Queensland's building watchdog says it is working with hundreds of customers of collapsed builder Oracle Homes to ensure their partially built homes are completed.
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The residential builder collapsed on Wednesday, with about 70 staff sacked and building work halted on about 300 homes.
Robson Cotter Insolvency Group has been appointed as liquidator, saying Oracle could be about $14 million in debt.
Premier Annastacia Palascczuk said the collapse was a major concern with building companies, urging Queenslanders to be diligent and seek advice before entering into contracts.
"There are big issues with building companies across the nation in relation to the rising costs of supplies - that's nothing new," the premier told reporters on Thursday.
"But people put all of their life savings into their homes, whether it's a new home or upgrading a home, and they want to feel safe, that their home will be completed.
"I think it's very important that people familiarise themselves with the contracts they're entering into, they speak to the owners, the people who they're sitting down with (who are handling) the contracts and that they get legal advice to reassure themselves."
The Queensland Building and Construction Commission (QBCC) says it is contacting all 386 policy-holders who took out insurance with Oracle in the past two years to help them lodge claims.
"The QBCC knows that when any building company collapses, it can have a significant impact on everyone who has had dealings with that company," the regulator told AAP in a statement on Thursday.
"That is why the QBCC has set up a dedicated team to handle the non-completion claims from homeowners affected by this event, and we will be doing everything we can to help them continue to get their homes built."
Master Builders Queensland chief executive Paul Bidwell said the state's mandatory home warranty insurance scheme will cover most Oracle customers in Queensland for up to $200,000.
However, he said Oracle customers have faced months of delays on their homes, and getting them completed won't be fast enough for those caught up in this situation.
"So it will take time and it's going to be ... a lot longer than what those poor people had hoped, but their interests are protected," Mr Bidwell told ABC Radio on Thursday.
"As I say, it's a very strong safety net."
Oracle is among a number of building companies to collapse in Queensland in the past year, and Master Builders expect more to go under.
Mr Bidwell said many construction firms are adding contingency into their contracts to take into account future building material prices, which have surged because of supply chain disruptions caused by the pandemic and the war in Ukraine.
He said the sector has also been dealing with labour shortages because of a rise in demand for new homes amid low interest rates and after recent natural disasters.
"So we've had all this perfect storm of conditions, which means we can't get the people we need to build and we can't get the materials," Mr Bidwell said.
Australian Associated Press
