Construction will pause for five weeks on Ballarat houses being built by Harmac Homes after the company went into voluntary administration this week.
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The new home builder has 15 houses under construction in the Ballarat area.
It has a display home in Winter Valley and is advertising five house and land packages in Alfredton, Bonshaw and Lucas ranging from $758,000 to $602,000.
On Tuesday, Harmac Homes said in a letter to customers it was disappointed it had made the difficult decision to enter voluntary administration but it intended to finish current builds.
It said it had not collapsed and voluntary administration was a "process that will help us restructure our business to make it more sustainable".
Ballarat customers can expect to wait five weeks before work continues on their houses while the voluntary administration process occurs.
Harmac Homes said it was one of many businesses facing challenges in the construction industry.
"It's no secret that builders are facing many challenges right now, with spiralling materials and labour costs and rising inflation putting unprecedented pressure on the construction sector," a Harmac Homes statement says.
"Given these economic challenges, we had no choice but to enter voluntary administration to restructure so we can put the business on a stronger financial footing."
Harmac Homes is the parent company of Harmac Homes, Harmac Urban Living and Ridge Homes.
The announcement comes after Ballarat-based builder Bond Homes entered voluntary administration on July 31, leaving a trail of angry customers.
For almost 35 years, it had been building transportable homes including granny flats, bungalows and park cabins.
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Barry Wight and Shaun Matthews of Cor Cordis have been appointed voluntary administrators of the Harmac Group.
Cor Cordis will pause construction works while they "urgently assess the business operations and explore all options to restructure or recapitalise the businesses, including through a deed of company arrangement", a statement says.
"We've set up an email address for customers, employees, and creditors. We will be providing regular updates to all stakeholders as we work through the voluntary administration process."
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