Rotorua family left with estimated $401k of unfinished home renovations, builder goes into liquidation

Michael Naera, 54, said they had lodged an unsecured creditor’s claim with the liquidators but believed it was unlikely they would get any money back.

“It’s an absolute horror story,” he told the Rotorua Daily Post.

CB Built managing director Callum Benn said the reasons for work stopping were “complex” and “not accurately reflected by a simple characterisation that the project was abandoned”.

Many matters remained disputed and were the subject of legal correspondence between the parties, and it would be inappropriate to discuss the allegations publicly, Benn said.

Naera said he and Frances bought the home 13 years ago. They live with their 19-year-old granddaughter, Kataraina Cudby, and their 38-year-old son, who lives in a cabin on the property.

The plan was to renovate upstairs first while the trio lived downstairs. Once upstairs was completed, downstairs would be renovated, he said.

“My wife and I have worked really, really hard over the years. She’s a schoolteacher, and I work in health, and we wanted to futureproof the home for our family.”

Naera said the couple signed a $792,000 contract with Tauranga company CB Built for work to begin in January 2025.

Rotorua father Michael Naera and his granddaughter Kataraina Cudby, 19, at their home on which renovations have been left unfinished by a Tauranga building company. Photo / Megan Wilson

The “first alarm bell” rang when the builder’s foreman was on site for a month by himself to do the upstairs demolition, Naera said.

Then, when two builders and an apprentice joined the foreman on site, they “couldn’t do much because they were waiting on suppliers”, he said.

Naera claimed the builders did “variations” the couple did not sign off on, including removing and replacing Gib, and roof and ceiling alterations.

Disputes arose between the parties over various elements of the project and the relationship deteriorated.

Naera said work stopped in July: “We basically went into a meltdown.”

They engaged a lawyer in August/September. Discussions about remediation followed.

Renovations on Michael Naera’s home have been left unfinished. Photo / Megan Wilson

On April 17, the Naeras’ lawyer gave CB Built 30 days to remediate everything.

“[They] didn’t come back to the site.”

On May 11, the company went into liquidation.

Naera said his architect’s audit showed there was an estimated $401,000 worth of work remaining.

He said his architect had donated “hours” of time, and other builders had also offered to help them or donate their time and materials.

“There’s a lot of kind people out there … That gives us hope.”

Other offers of support could be directed to Naera’s whānau friend Di Koti: diane.koti@gmail.com

Living in ‘freezing’ and leaky conditions

The Naeras and Cudby moved downstairs in January 2025 when renovations began upstairs. Naera described the conditions as “basically unliveable”.

“It’s cold, it’s freezing, we’re using so much power on heaters.”

They converted their carport into a bedroom. Meanwhile, they “kept getting flooded” downstairs as the building paper on walls upstairs was only waterproof for a month, he said.

Rotorua father Michael Naera has been living in the downstairs area of his home which he says is “basically unliveable”. Photo / Megan Wilson

CB Built had put black polythene on the walls earlier this year to combat the leaks, which had now started to “come away”.

He said work could not continue because of defects and the council needed to sign off on the property again before the renovations could be completed.

A Rotorua Lakes Council spokesperson confirmed a building consent was granted for the property in 2024 and “subsequent routine inspections failed and were non-compliant with the consent”.

Once a building consent had been granted, routine inspections were done throughout the building process. Gaining a code of compliance certificate at the end of the building process relied on passing inspections, the spokesperson said.

The council was still in the inspection process.

Michael and Frances Naera’s Rotorua home before renovations began. The carport has been converted into a temporary bedroom.

Christine Cudby, Naera’s daughter, said she and her three children were planning to move downstairs once it had been renovated.

The 39-year-old teacher aide said the four were living in a tent in a shed on her parents’ land for six months last year while waiting for the downstairs renovations to be completed.

They moved into a rental in September, two months after renovations stopped.

“Since moving, I’ve had to withdraw my KiwiSaver because I was really struggling.”

Cudby said she should be living and paying rent at her parents’ house.

“That was a lot of money to pay … and to not even have a house that you can live in is f***ed.”

Cudby set up a Givealittle page for her parents.

“I just want them to have the help so they can at least finish the top of their house … to have a nice warm place to live.”

The Rotorua Daily Post approached Benn for comment directly and via his lawyer. Benn was asked why work stopped, what work was completed and not completed, and what happened with the Naeras’ money given an estimated $401,000 was not completed.

In a statement provided through his lawyer, Benn acknowledged Michael and Frances Naera had experienced “significant frustration and disappointment arising from the incomplete renovation project” and the subsequent liquidation of CB Built.

“However, many of the matters raised remain disputed and have been the subject of legal correspondence between the parties.

“Given the existence of those disputes, and the company’s recent entry into liquidation, it would be inappropriate to engage in a detailed public debate regarding the allegations.”

Benn said that without accepting the accuracy of the claims made, the project involved a “substantial renovation” done over an extended period and included numerous issues requiring assessment, variation, redesign and further work as the project progressed.

“The reasons for work slowing and ultimately stopping are complex and are not accurately reflected by a simple characterisation that the project was abandoned.

“There were ongoing disputes regarding payment, variations, scope, responsibility for work and the future direction of the project.”

Benn said “significant” construction work was completed at the property “before the relationship between the parties deteriorated”.

“Any suggestion that little or no work was completed is incorrect.”

Benn said the various estimates and conclusions publicly asserted regarding the value of completed work, alleged defects, or the cost to complete the project were not accepted.

The company’s financial affairs were controlled by appointed liquidators, and questions about its assets, liabilities, creditors and financial position should be directed to them, he said.

Benn said a number of customers and suppliers had been affected by the liquidation, and the impact on all parties involved was “regrettable”.

“No further comment will be made while matters remain disputed and subject to the liquidation process.”

What the first liquidators’ report says

Steven Khov and Kieran Jones, of Khov Jones in Auckland, were appointed as joint and several liquidators by a special resolution of CB Built shareholders on May 11.

The first liquidators’ report on May 18 said the Pāpāmoa building and house construction company failed because of taking on “unprofitable projects and having insufficient assets to satisfy its liabilities”.

The company’s assets included $10,000 in plants and equipment, and $51,000 in debtors. The value of vehicle assets was not disclosed.

Preferential and secured creditors were owed $176,248. This included $140,335 to Inland Revenue, $34,313 to secured creditors with purchase money security interest and $1600 for employees’ holiday pay.

Liquidators were determining if there were any unpaid wages, holiday pay and/or redundancy pay to former employees and were yet to receive a claim from Inland Revenue.

Creditors include Bunnings, Carters Building Supplies, Future Trust, Inland Revenue, Resene Paints, Tasman Aluminium and UDC Finance.

CB Built owed $96,000 to unsecured creditors. The amount owed to Inland Revenue as an unsecured creditor in penalties and interest was not recorded.

Unsecured creditors were asked to complete an unsecured creditor’s claim form.

The liquidators said it was “not practicable” to estimate the completion date for the liquidation or whether there would be any distribution at this stage.

Further liquidation reports would be issued every six months.

In a statement to the Rotorua Daily Post, Khov confirmed the liquidators had received a claim from Michael and Frances Naera, which would be reviewed and processed.

Asked if the Naeras could expect to get any money back, Khov said the liquidators were unsure at this point as it was “relatively early” in the liquidation process.

“We will provide further updates in our statutory reports that are published in due course.”

Megan Wilson is a health and general news reporter for the Bay of Plenty Times and the Rotorua Daily Post. She has been a journalist since 2021.