THE state's construction watchdog has ordered serial building industry shonk Daniel Roberts and his associates to stop work immediately on a Lake Macquarie development due to "serious structural defects" and safety concerns.
In an escalation of pressure against the rogue operator, the Building Commission NSW last week ordered Sustainable Homes Australia R & D, also known as S.H.A.R.D, to stop work at Mount Hutton, and issued SD Portfolio Holdings an order preventing it from issuing occupation certificates to buyers of apartments at 14-17 Herd Street.
Inspectors visited the Mount Hutton site in January and May, finding "serious defects" and "issues of poor quality", which meant the project did not comply with building standards.
Roberts, who is not a builder, has been advertising apartments in the development for sale off-the-plan for almost a year and is regularly seen working on site.
"Formwork had not been completely removed between elements of concrete and masonry structure within the basement area," the stop-work notice reads.
"Honeycombing and exposed reinforcement were observed in the basement slab and columns, along with evidence of inadequate repairs."
NSW Building Commissioner James Sherrard said the defects were a danger to the public and potential buyers of the apartments.
Mr Sherrard's order means the only work allowed at the Mount Hutton site is to make it safe or fix the defects.
"Based on my review of the matter and all the available evidence provided by authorised officers, I am of the opinion that continuing with building work in circumstances where there are signs of significant structural defects will, or is likely to, result in significant harm or loss to the public or occupiers or potential occupiers of the building," he said.
A rectification order has also been issued to Sustainable Homes Australia R & D for a development site at 24/71 Terrigal Drive, Terrigal, after inspectors found similar structural defects.
Inspectors identified "uncontrolled cracking" in a concrete slab and the risk of concrete cancer in the structure.
Roberts' long-term business partner, Shashanth Shankar Tellakula Gowrishankar, is the sole director of the development company SD Portfolio Holdings. The sole director of the building company, Sustainable Homes Australia R & D, is another long-time associate of Roberts, Madhukar (Madhu) Dhanesh Babu Pobbathi.
Roberts, who has been declared bankrupt twice in less than a decade, was removed as a director of SD Portfolio Holdings in March 2023.
All three were involved in a notorious Wallsend development that is the subject of several court battles over a long list of defects, including structural and waterproofing problems, mould, blistering paint, cracked plaster and render and design changes.
As reported by the Herald last year, the cost of fixing the extensive list of defects at the Abel Street, Wallsend, development completed by Sustainable Home Development R&D is estimated at almost $1 million.
According to an expert report prepared for the owners' corporation, there are major problems with the building works, which comprise 20 two-storey townhouses across several lots.
Residents are calling for the building regulator to turn its eye to the Wallsend development as well.
After being lashed for years for responding too rarely and too slowly to Roberts' repeat offending, several regulators have turned up the heat on the rogue operator this year.
It follows a continuing Herald investigation that has revealed Roberts has been linked to a string of construction disasters across the Hunter stretching back at least a decade, which have left families, tradies, clients, and suppliers millions of dollars out of pocket.
The unscrupulous operator's track record has sparked boiling anger from Hunter residents about the impotence of watchdogs in holding him to account.
Resident Stephen Kuzmik welcomed the stop-work notice at Mount Hutton, saying neighbours held grave concerns about the quality of the build.
"We don't want the same thing happening here that has taken place at other development sites he's been involved in," Mr Kuzmik said.
"We've all heard about families being left out of pocket, or battling to get defects fixed, and the terrible impact it has. It can't be allowed to just keep repeating, so we are pleased about the number of eyes on this project."
Since work began, homeowners living near the development have repeatedly raised concerns to the Building Commission NSW, Lake Macquarie City Council, and SafeWork NSW over alleged non-compliant building work.
Neighbours have been fighting the DA for more than nine months due to concerns that the development does not suit the suburban area.
The Herald revealed in April that Lake Macquarie City Council issued a $30,000 fine to the 17 Herd Street builder, Sustainable Homes Australia R & D, for "failing to provide adequate erosion and sediment controls".
A further fine of $30,000 was issued by the Building Commission NSW, and a rectification order was served in February to fix several defects in the concrete work.
In a NSW legal first, Roberts was ordered to pay more than $1 million in 2023 to a group of mum-and-dad developers after he trashed their Jesmond construction project, but they never received a cent.
Roberts was the first person in the NSW construction industry to be held personally liable for being negligent under new laws designed to tighten protection for homeowners and owners' corporations.
In late 2018, Supreme Court Justice Robert McDougall - ruling in a dispute involving Shankar and Roberts against a Hunter family - said there was "very strong evidence" the pair were "structuring their affairs in such a way so as to avoid, wherever possible, paying their liabilities".
"It is open to infer that they have engaged in the well-known but opprobrious practice of utilising phoenix companies," Justice McDougall said.
"Consigning insolvent companies to the fires of liquidation, and creating new companies to arise from the ashes and take their place."
In June 2024, Roberts was expelled from the Royal Institution of Chartered Surveyors (RICS) following a series of complaints from Hunter resident Phillip Kapeller.
For years, Roberts has used his membership to the globally recognised body to give him professional credibility and attract clients.
But following seven days of hearings in 2024, RICS members voted to expel Roberts, finding his actions in deliberately trashing the Jesmond development would significantly damage the public's confidence in the surveying profession.
"The panel noted that these were serious breaches of the rules and that the departures were a significant departure from what would ordinarily be expected of a professional," the RICS ruling reads.
