A Melbourne couple is facing significant financial distress after their builder, MJ Harris Group, went into administration last week. Tony and his wife had hoped to complete a major renovation on their home but are now left with a partially demolished structure and a sense of despair.

In March of last year, builder Mike Harris convinced the couple to pay $140,000 in additional costs outside their contract to secure building materials and labor. "He really, really led us to believe that it was critical to lock in prices for those materials and to lock in trades and timing, which was exciting for us at the time," Tony said. Harris assured them that the renovation would be completed by the end of last year. However, when the ABC visited their property last week, it was clear that the project was far from finished.

Tony reported that only $900 worth of supplies had been purchased by Harris's company. "It's been the single-handed most devastating event in our entire lives so far," he said. The couple has since severed ties with Harris and hired another builder to take over the project. They were shocked to discover that Harris did not possess a valid building license. "We only found out that he wasn't a registered builder after we'd signed the contract," Tony explained.

The Building and Plumbing Commission confirmed that neither Harris nor his company has ever been registered as a builder in Victoria. An investigation is underway regarding allegations that Harris conducted building work without the necessary registration.

Rebecca, another customer of MJ Harris Group, shared her experience of feeling pressured to make payments for her renovation project. She signed a contract in July and paid a total of $25,000, but received unexpected bills shortly after. "I did feel pretty pressured and getting a fair bit of anxiety over it and I buckled to them," she said. By May, she was still waiting for engineering work and eventually took her complaint to the Victorian Civil and Administrative Appeals Tribunal. However, the company went into administration before her case could be resolved.

Isabella Gualtieri, another client, also faced similar issues. She and her husband paid $19,000 for their renovation, but no work was completed. They later learned that Harris's previous companies had gone into administration, leaving them with no recourse.

The financial troubles of MJ Harris Group extend beyond clients. Employees have also been left unpaid, with some taking legal action for their owed wages. Videographer Michael Potts is owed $18,300 and has not received payment despite a court order. "It's extremely distressing because it's like you're going to a job that you're working 40 hours a week, and you're kind of just hoping that you're going to get paid," he said.

Harris, through his lawyer, attributed the company's collapse to the "unprecedented pressures" of the COVID-19 pandemic. He expressed regret for the hardship caused to clients and staff.

As MJ Harris Group enters liquidation, employees may recover some of their owed wages through the Fair Entitlements Guarantee scheme. However, clients like Tony and Rebecca are left feeling hopeless about recovering their lost funds. Tony stated, "At this point in time, we're not expecting to see any of our money back. We'd be really hopeful to see even five or 10 cents in the dollar."

Experts in building law have raised concerns about the lack of consumer protection in the industry, noting that disputes can be complex and costly. Matthew Bell, an associate professor of law, emphasized the need for better protections for consumers making significant investments in home construction and renovation.

The situation highlights the challenges faced by clients in the building industry, where financial losses can be substantial and recovery options limited.