Burswood-based builder Builton Group, which trades under the brands Platinum Homes and Aspireon Homes, seems poised to join the growing list of residential builders in Western Australia gone bust.
New Home Building Brokers managing director Tristan Kirkham said he had been fielding calls from distressed staff members and contractors on Friday claiming Builton Group was going into administration.
WAtoday understands around 80 homebuyers could be impacted, with approximately 50 homes under construction and around 20 to 30 at the pre-start stage.
Mr Kirkham also claimed contractors could be owed millions, with many on payment plans with Builton Group.
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"A builder should not be allowed to go on these payment plans... it gives suppliers two choices, they either pull the rug out from underneath the builder and get nothing, or they hope the company trades out of it.
"And that's whats going on all the time."
Builton Group has building projects underway throughout the metropolitan area in areas such as Tapping, Success, Clarkson, Bulwer, Wandi, Spearwood, Burswood and Maylands.
The company has been run by managing director Troy Felt since 2004.
Calls to its offices on Friday went unanswered - and WAtoday understands the company's staff, up to 90 people, had been told not to come to work on Monday.
The expected closure comes two months after Collier Homes went into liquidation in November and high-end builder Quattro Homes being placed into administration in September.
Pitaro Homes and Nominated Homes went into liquidation in August following the collapse of Geraldton-based builder Shane Crothers Homes in June.
The Australian Securities and Investments Commission on Friday was yet to list Builton Group on its insolvency register.
But Mr Kirkham claimed there would likely be an announcement from liquidators in the coming days.
He warned prospective homebuyers to do their research before deciding which builder to sign with.
"If someone's looking at building a home, they should ask the builder, 'if we sign a contract, what's the name of the company we're going to sign up?'" he said.
"Also ask to confirm that all of their suppliers are up-to-date with payments and go to site and speak to their contractors and ask how it's going."